Meeting the challenge of climate change

The Government is addressing climate change, including through the Low Emissions Technology Development Fund and participation in the Asia-Pacific Partnership on Clean Development and Climate.

Building on this, the Government will provide a range of measures costing $741 million over five years to reduce emissions and to prepare Australia for the consequences of climate change.

Reducing emissions

Preventing deforestation and establishing new forests can greatly reduce greenhouse gas emissions.

The Government will allow deductions for the costs of establishing carbon sink forests, at a cost of $24 million over four years.

The Government will also lead efforts to protect the world's forests with $197 million over five years for the Global Initiative on Forests and Climate.

This will be complemented by the provision of $33 million in 2007‑08 to support water management, energy efficiency and alternative energy initiatives in developing countries.

A further $150 million will be provided over five years to accelerate the installation of solar panels on homes and schools.

Preparing for a changing climate

Given the inevitable impact of past and future emissions on Australia's climate, this budget provides for significant research into how we can best adapt —with $126 million over five years for an Australian Centre for Climate Change Adaptation and $103 million over four years for CSIRO Climate Adaptation and Energy Research Flagships.

The Government has also established a joint government‑business Task Group to advise by 31 May 2007 on a workable global emissions trading system.