Federated Farmers says a new Parliamentary report card on the country's environment has hit the nail on the head.

The latest report from the Parliamentary Commissioner for the Environment has identified climate change and sea level rise as the biggest environmental issue facing the country.

Commissioner Dr Jan Wright has also warned of water quality, pests and erosion in particular parts of the country.

Federated Farmers environment spokesman Chris Allen said the findings align with the priorities of farmers, regional councils and central Government.

"They are working as a team trying to target those hotspot areas, and we've just got to make sure the enduring solutions are found."

Mr Allen said those solutions include erosion reduction in the East Cape and coordinated pest eradication programmes.

SEE ALSO: Govt's environmental report criticised for not giving the full picture

In light of the report, the Government has acknowledged that they need to do more on climate change, particularly on transport.

Dr Wright said urban areas are vital to reducing greenhouse gas emissions, particularly those from transport.

Transport Minister Simon Bridges said they're continually ramping up efforts, and they know that needs to keep increasing.

"We've started on an electrical vehicle package that will see us get 2 percent of our fleet, but is 2 percent enough? Clearly not."

Meanwhile, the report is also being given a pat on the back by the possum fur industry.

Dr Jan Wright identified pest control as one of the biggest issues facing the country- she said more needs to be done to win the "battle for the birds" and eradicate possums, rats and stoats from forests.

Fur Council chairman Neil Mackie said there is also good business sense in eradicating the pests, with the possum fur industry worth an estimate $110 to $150 million a year.

He said the industry employs about 1,500 people a year, by generating wealth from an animal that would otherwise be a pest.

Mr Mackie said the Department of Conservation has agreed to make it easier for accredited hunters and trappers to gain access to public conservation land.

He said New Zealand has an estimated possum population of 30 million, and the industry hopes to increase its annual take from 1.2 million possums to 3.2 million.