The opposition leader Kim Beazley welcomed the government's greenhouse gas reduction programs, under the Asia-Pacific Clean Development and Climate Partnership (AP6), but said such projects would be worthless if they were not within a global emissions trading regime.
The cost of a carbon trading regime, he says, to help reduce greenhouse gas emissions will come down over time through greater efficiencies.
"(Prime Minister) John Howard is not sincere on dealing with the consequences of climate change," Mr Beazley told reporters.
"Unless you're prepared to commit yourself to ratification of Kyoto, to emissions trading and the establishment of targets, you do nothing.
"That is what has been made amply clear by the Stern report and by what the scientists have to say to us."
But the Labor leader has baulked at saying if there would be higher costs for power and other commodities if Australia were to sign up to global greements to penalise carbon emissions.
The Stern Review on the Economics of Climate Change, released in London, warns of economic and climatic disaster if urgent action is not taken to tackle global warming.
In his report, Sir Nicholas Stern slated Australia for not ratifying the Kyoto Protocol, which sets targets for reducing emissions.
Mr Beazley would not concede whether consumers and industry would have to pay more under carbon trading.
"What tends to happen once you get in place a proper emissions trading system is, of course, people get efficient," he said.
"As they get more efficient, then the cost impositions are not so great.
"If we don't do these emissions trading systems, and that is the right way to go, the cost to our community will be unconscionable."
'Funding wrong projects'
Australian Greens leader Bob Brown says Mr Howard is giving the climate change funding to the wrong projects.
The government's plan will fund 42 projects in collaboration with the five other countries in the AP6 Asia-Pacific climate bloc.
More than half the money is earmarked for projects to develop clean coal technology, including A$8 million for a mobile carbon catcher for coal-fired power stations.
Mr Howard told reporters he was taking practical measures quickly while other politicians were merely looking to sign pieces of paper.
Senator Brown says Australia should have ratified the Kyoto protocol.
"It's like your first sip of tea in the morning. That's important, but if you don't have anything else for the rest of the day it looks pretty pathetic," Senator Brown told the National Press Club.
He said the funding should be going to renewable energy technology instead.
"This money in bulk is going to the coal industry. A bit across to renewables, a bit here and there, tokenism, but it's basically been handed across to the coal industry," Senator Brown said.
"The renewables people, the energy efficiency experts, the small companies that are out there struggling to get dollars to put the world-saving technology they have together, simply don't make it.
"Now the coal industry is cash-rich. It's returning billions of dollars worth of profit each year.
"Let it research putting gas underground, or whatever else it's going to do."
Mr Howard should establish a commission to investigate renewable energy technology, energy efficiency and demand, and the huge societal changes that would be needed to combat climate change, he said.