Resources Minister Martin Ferguson has unveiled draft legislation to establish the world's first framework for carbon dioxide capture and geological storage (CCS).
Mr Ferguson said it involved capturing greenhouse gas emissions, predominantly from coal-fired power stations, before they reached the atmosphere.
The gas is then injected and stored deep underground in geological formations similar to those which have stored oil and gas for millions of years, he said.
"With 83 per cent of Australia's electricity generated from coal, no serious response to climate change can ignore the need to clean up coal and the Government's establishment of a CCS framework represents a major step towards making clean coal a reality," he said in a statement.
Draft carbon capture laws unveiled
