The Australian Greens hope a deal struck with the federal government on debt will expose the true cost of paying for the coalition's direct action plan on climate change.
As part of the deal secured with the minor party to scrap the national debt ceiling, the government has agreed to report on the impact of climate change policy in future budgets.
Greens leader Christine Milne said this would highlight the cost of tackling climate change without a market mechanism like an emissions trading scheme (ETS).
"That is a good improvement, too, so people can clearly see what not going to a market mechanism is going to cost in terms of the budget," Senator Milne told reporters in Canberra on Wednesday.
The government's direct action plan will directly fund activities that reduce carbon dioxide emissions, whereas an ETS requires businesses to pay for the greenhouse gases they release.
The Greens have fiercely opposed direct action, and vowed to block the repeal of Labor's carbon pricing mechanism in the Senate.
In his letter to Senator Milne, Treasurer Joe Hockey said a debt statement with details regarding government spending on climate change would be included in future budgets and key economic reports.
The extent to which this expenditure had contributed to debt would also be included.
All future Intergenerational Reports will retain an extra section on the environment, including climate change and the effect of these policies and their impact on the economy and budget.
"I will consult with the Australian Greens on the scope of what could be included within the section," Mr Hockey wrote.
