"We are not the biggest polluter or the biggest economy but our commitment to action on climate change matters," Australia Prime Minister Anthony Albanese said in a statement.

"It matters to our neighbours, it matters for our economy and it matters for the country that we pass on to our children."

The government also announced A$5 billion ($3.32 billion) in funding to help industrial facilities decarbonise, as well as A$2 billion for the country's Clean Energy Finance Corporation to continue to drive downward pressure on electricity prices.

($1 = 1.5058 Australian dollars)