The Asia-Pacific Partnership on Clean Development and Climate aims to develop and promote technologies such as "clean" coal, nuclear and renewable energy forms.
Ministers from the United States, China, India, Japan, South Korea and Australia have met with executives from major mining and energy companies including Exxon Mobil, Rio Tinto and Peabody Energy.
However the grouping has drawn criticism that it is a bid to undermine the Kyoto Protocol, which seeks to reduce carbon emissions.
Australia and the US, which on a per capita basis have the highest carbon dioxide emissions in the industrialised world, have refused to sign the Kyoto Protocol.
While the protocol commits developed countries to reducing their emissions of greenhouse gases produced from burning fossil fuels such as oil and coal, the new partnership -- known as AP6 -- has ruled out setting any enforceable targets.
Instead, it says emissions can be brought down effectively by developing new technologies.
Acting opposition leader Jenny Macklin said real targets and a timetable for reducing greenhouse gas emissions must be set at the two-day meeting if it is to be of any benefit.
Ms Macklin said it is extremely important that Australia sign the treaty.
"[The conference] should be seen as a complement to the signing of the protocol," she said.
"The importance of the Kyoto Protocol is that it commits so many countries around the world to the reduction of greenhouse gas emissions and Australia should be part of that."
US Energy Secretary Samuel Bodman told reporters ahead of the conference that the "world community must seriously consider using nuclear power if it is to make any serious inroads into greenhouse gas emissions".
He said world demand for electricity will increase by 50 percent over the next 20 years and fossil fuels cannot realistically meet that demand.
He said the responsibility for reducing greenhouse gases lies with the private sector, however governments should work to make their task as easy as possible.
The conference is expected to press the private sector to find billions of dollars to finance programmes to reduce pollution.
Protests
However critics and environmental groups claim the meeting will not solve anything.
Groups such as Greenpeace argue the conference should include a greater emphasis on renewable energy sources such as solar, wind and geothermal power.
Protesters gathered outside the Four Seasons Hotel in Sydney, where the meeting is taking place, buried a large replica of Australian Prime Minister John Howard's head in coal to symbolise what they claim is his commitment to industry profits over climate change solutions.
New South Wales Conservation Council spokeswoman Cate Faehrmann said the meeting is a sham.
"We believe it's nothing more than a coal pact, once again is all talk and not action at this meeting," she said.
Australia's Industry and Resources Minister Ian MacFarlane said that if all countries adopted "clean" fossil fuel burning technology then greenhouse gas emissions would be reduced by three times the level that would be achieved under the Kyoto Protocol.
The US accounts for 25 percent of carbon emissions while Australians produce more carbon dioxide per person than any other country, but they say the Kyoto pact is unfair as it does not commit developing nations to reducing emissions.