A deal to restrict government financing for inefficient coal-fired power plants has been struck less than two weeks out from major global climate talks in Paris.
After two years of negotiations, the OECD reached a historic agreement to pare back export credits for coal plants with high carbon emissions to help combat climate change.
The world's richest countries will no longer provide finance support for large coal-fired plants that don't employ the most efficient technology but will still hand over credits for smaller inefficient plants in developing countries.
That was a main sticking point for Australia which negotiated the exemption for countries, such as India, where at least 90 per cent of their population didn't have access to electricity.
Energy Minister Josh Frydenberg said about one billion people would still need access to electricity and coal would play a vital role.
"Coal is still a major part of the energy mix," he told ABC radio on Thursday.
"Coal is not going away."
The goal is to encourage coal exporters and buyers to transition away from low-efficiency technology to reduce emissions.
High-quality coal, like that produced in Australia, would bring down emissions, he said.
Trade Minister Andrew Robb said the new rules struck the "right balance" between cutting emissions and ensuring access to adequate power supplies to support development.
World leaders head to Paris in just over a week for the United Nations climate change conference, where it's hoped 196 countries will strike a deal to limit global warming.
