Environment Minister Rebecca Vassarotti says wood heaters will be banned by 2045

The government will start work on the specifics of a plan to phase out heaters but it is likely a ban on the installation of new wood heaters will be expanded.

The installation of wood heaters is already banned in most new suburbs and Tuggeranong is set to be the next district where new wood heaters would be prohibited.

Environment Minister Rebecca Vassarotti acknowledged the government's decision would be divisive.

"I appreciate many Canberrans grew up with wood-fired heaters and they offer nostalgic charm and comfort," she said.

"However, we need to confront the reality that the smoke they emit is a direct source of pollution in our homes, a clear and present danger to the wellbeing of our community in urban and suburban areas and a looming threat to our natural environment."

The government has agreed to the phase-out as part of its response to an investigation from the ACT commissioner for sustainability and the environment, released earlier this year.

The commissioner, Sophie Lewis, urged the government to set a target date for the replacement of wood heaters in all suburbs excluding rural areas.

The government agreed to the 2045 end date as it was in line with the government's plan to end the use of gas in the territory.

Wood heaters are already banned from being installed in the Molonglo Valley (excluding Wright) along with Dunlop and east O'Malley.

ACT commissioner for environment and sustainability Sophie Lewis. Picture by Keegan Carroll

The government is also set to ban the installation of wood heaters in Tuggeranong. The commissioner called for a ban on the installation of wood heaters in all suburbs.

"Extending the restriction of new wood heaters to the Tuggeranong Valley appears timely and appropriate to avoid increasing air quality issues that occur during winter," the government's response said.

"Extending this ban to other areas of Canberra may be appropriate but require further analysis."

But the government has rejected a recommendation from the commissioner to establish a register of wood heaters in the ACT as it would be too costly.

The government also noted a recommendation to mandate the removal of wood heaters before a property could be sold. The response said this would require a careful analysis and consultation with the community.

Ms Vassarotti said the government would consider putting appropriate supports in place during the phase-out.

"We are aware that high costs of living are placing financial stress on many and the government will incorporate this consideration into our next steps to ensure we can best support the community in the phase-out process," she said.

The government gives a $250 rebate to remove wood heaters.

This increases to $750 if a wood heater is removed an an electric reverse cycle system is installed or $1250 for an installation of an electric ducted reverse cycle system.

Dr Lewis said she welcomed the government's commitment.

"My investigation showed that there is no safe level of air pollution for human health," she said.

"Wood heaters have no place in Canberra's all-electric, 100 per cent renewable energy future."