The Rudd Government is providing over $15 billion to implement a comprehensive response to climate change to safeguard our environment, sustain our society and support our economy.

The Government has developed a comprehensive and integrated suite of climate change policies and programs to guarantee that emissions come down, and provide incentives for action as we meet our ambitious 2020 pollution reduction targets and transform our economy.

"The Australian Government Climate Change Strategy provides the long-term framework and confidence required to create the new jobs and businesses of a low pollution future," Minister for Climate Change and Water, Senator Penny Wong said.

"We will play our part in global efforts to address climate change through our ambitious emissions reduction targets and support climate change science and adaptation initiatives.

"The Government is also making a substantial investment in developing low carbon energy technologies, giving investors the confidence required to back low-emissions technologies and industries to assist Australia's transition to a low pollution future." Senator Wong said.

This Budget, the Government is investing $4.5 billion in the Clean Energy Initiative.

"The Government will provide new funding of $1.365 billion in the Solar Flagships Program, which will position Australia to be a world leader in solar power generation capacity," Senator Wong said.

The Initiative funds the establishment of a new body, Renewables Australia to support leading edge technology research with new funding of $100 million. It will bring renewable technologies to market at acceptable cost, advise on the implementation of renewable energies, and support growth in skills and capacity for domestic and international markets.

The Initiative also provides new funding of $2 billion for industrial-scale carbon capture and storage projects under the Carbon Capture and Storage Flagships Program.

The Government is also providing funding of over $4 billion for a suite of energy efficiency measures to reduce energy use and carbon pollution in homes, communities, business and industry, providing the biggest single investment in energy efficiency in Australia's history.

Ambitious action on energy efficiency and well-designed limited transitional support for our emissions-intensive, trade-exposed industries will also support existing industries and jobs.

The Rudd Government will provide up to $100 million in 2009-10 for the National Energy Efficiency Initiative to develop an innovative smart-grid energy network.

Combining broadband with intelligent grid technology and smart meters in homes, this demonstration project will enable greater energy efficiency and better integration of renewable energy sources, such as solar and wind power.

To enable Australia's emissions reduction target to be achieved, the Government will implement the Carbon Pollution Reduction Scheme and accelerate the transformation of energy supply through the Renewable Energy Target.

The Carbon Pollution Reduction Scheme is the major driver in Australia's strategic response to climate change.

"The Climate Change Action Fund will provide $2.75 billion in support for businesses, industry, community organisations, workers and regions," Senator Wong said.

The Government will provide limited direct assistance to coal-fired electricity generators through the Electricity Sector Adjustment Scheme to assist these businesses adjust to a carbon price.

"Support will also be provided to low-income households, pensioners, seniors, carers and people with a disability to fully meet the expected overall increase in the cost of living flowing from the Carbon Pollution Reduction Scheme, while middle-income households will receive additional support to help meet the expected overall increase in the cost of living" Senator Wong said.

The Government recognises that many Australians households and small businesses want to continue to engage in individual action to reduce emissions.

To further support this voluntary action, funding of almost $76 million will be provided over five years to establish the Australian Carbon Trust, which will provide information and tools for households and businesses to participate in Australia's climate change response.