Sydney (Platts)--18Mar2008

Australia's government has set aside A$1 billion ($0.93 billion) for the
development, commercialization and deployment of various renewable and
low-emission energy technology initiatives, the Minister for Resources and
Energy Martin Ferguson said at the Energy State of the Nation Forum in
Sydney Tuesday.

Half the sum would be channeled toward renewable energy technologies,
and the balance spent on developing clean energy technologies.

As the country's electricity generation is mostly coal-fired, there is
pressure on the industry to reduce greenhouse gas emissions. Funds have been
established for developing clean coal technologies, including carbon dioxide
capture and geological storage.

"The most significant policy challenge facing the energy sector today is
climate change. The Australian government is serious about acting responsibly
on climate change and has committed to reducing Australia's greenhouse gas
emissions by 60% on 2000 levels by 2050," Ferguson said.

"The government is also serious about being economically responsible and
we are committed to reducing emissions at least economic cost, whilst
maintaining adequate, reliable and affordable energy supplies and the
international competitiveness of Australia's industries," he added.

Prime Minister Kevin Rudd ratified the Kyoto Protocol in December 2007, a
few weeks after he took office.
--Joanna Lim, joanna_lim@platts.com