Garrett stripped of responsibilities

Peter Garrett has been stripped of the portfolio of energy efficiency (AAP)

Environment Minister Peter Garrett has been stripped of responsibilities for the household insulation scheme, Prime Minister Kevin Rudd says.

Mr Rudd has announced the establishment of a new stand-alone department of climate change and energy efficiency, which will be headed up by Penny Wong.

Under the changes announced by Mr Rudd in Sydney on Friday, Mr Garrett will be appointed minister for environment protection, heritage and the arts.

Meanwhile, Greg Combet has been appointed the minister assisting the minister for climate change and energy efficiency and will be given the direct responsibility for the troubled insulation program.

Mr Rudd admitted the department changes were a demotion for Mr Garrett.

"This move is designed to achieve stronger coordination and greater efficiency in the development and delivery of climate change policies and programs, especially in relation to energy efficiency and renewable energy," Mr Rudd said.

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