My advice to the Government on climate change is simple: lead the world, but not by very much!

Despite our heavy reliance on fossil fuels, the ingenuity of our scientists and the enthusiasm of the Australian public give us the potential to be leaders in greenhouse gas reduction. In fact we already have been; as ACT Environment Minister in 1997, I went to the World Local Government Leaders' Summit on Climate Change Protection in Japan where I signed the Cities for Climate Protection Charter, making the ACT the first government in Australia to sign up to Kyoto-like targets for greenhouse gas reduction (reducing emissions to 1990 levels by 2008, and by 20% more by 2018).

Although the Stanhope Government abandoned these ACT targets in 2005, I held higher hopes for the Rudd Government, given its uplifting rhetoric on the issue. Imagine my disappointment at the Government's eventual target of 5% by 2020! This target is miserably unambitious, and undercuts the clear ambition that Australia can and should be in the vanguard on climate change.

The pre-election rhetoric of the Labor Party is certainly at odds with its current environmental policies; having measured themselves against climate change sophisticates, the Rudd Government’s new targets are a big come-down from their lofty ambitions of just over 12 months ago.

Leadership is what Australians are looking for, but not getting from the Rudd Government. But leadership has its limits.

I advocate a stronger target, but with one important qualification: that we do not strike out too far ahead of a world which may not share our ardour for tackling global warming. To act in the absence of an international platform for greenhouse gas reduction is to court disaster.

There is no Australian solution to this problem, as the Government's rhetoric might lead us to believe – there is only a global solution, and our Government must work closely with the rest of the world through processes such as the Copenhagen Conference in December.

Renaming its emissions trading scheme the Carbon Pollution Reduction Scheme is symptomatic of the Government's misleading mindset; greenhouse emissions are not the equivalent of pollution. Eliminating smokestacks in our cities will help clear up pollution in those cities, but eliminating carbon emissions in those cities won't make a jot of difference if emissions are actually increasing on the other side of the planet.

Malcolm Turnbull has put on the table this week an innovative take on this problem: the Green Carbon Initiative. The idea is based on turning crop waste and forestry waste into, in effect, charcoal and returning that to the soil to achieve the biosequestration of carbon. It has the potential to cut an additional 150 million tonnes a year by 2020.

Excessive climate enthusiasm carries great risk to our economy, but so does throwing up our hands in surrender. Ambitious but realistic measures, drawing on the best of scientific resourcefulness in our midst, are the order of the day.

Gary Humphries is the ACT Liberal Senator

It is essential that we approach the challenge of climate change as comprehensively as possible. As we've said, this is about global engagement, local leadership and action. It's more than just a whole-of-government approach; it involves all spheres of government (Fed, state/territory and local), community and business.

That's why it's reassuring to see the Rudd Government working on all these fronts to tackle climate change. Most Australians know that acting now is the responsible thing to do and we can’t afford to waste any more time.

Carbon pollution is causing the worlds climate to change. Studies have found that the ACT is likely to experience rising temperatures, increases in extreme weather events including high-intensity rainfall, flood, drought and bush fire risk.

That is why the government will introduce a Carbon Pollution Reduction Scheme (CPRS) to reduce the carbon pollution that is causing climate change. There's no doubt the global financial crisis is having a polarising effect on the public debate as many businesses feel the deep grip of tightening financial markets. The global financial crisis does not however diminish the risks of climate change or the benefits to Australia by taking action.

We make no apology for starting the CPRS with reasonable and responsible targets. Given the global recession this is the most responsible course of action. By the end of 2020, we will have reduced Australia’s carbon pollution by between 5 per cent and 15 per cent below 2000 levels. This 5 percent below 2000 levels is our minimum, unconditional commitment to reduce emissions by 2020, irrespective of the actions of other nations.

Schemes are already operating in 27 European countries. 27 states and provinces in the USA and Canada are introducing emissions trading to reduce carbon pollution, as is New Zealand.

In a nutshell, the CPRS will achieve a number of things: put a cost and a charge on carbon pollution which will encourage major polluting businesses to lower their emissions; use the funds raised to help industries that pollute to lower their emissions as well as use the funds raised to assist households to adjust to the scheme, making sure Australian families do not carry the cost of climate change.

Very importantly, the CPRS will provide support to build on our investment in renewable energy to create the low pollution jobs of the future -in solar energy, on wind farms and in jobs using new technologies like clean coal and geo-thermal energy.

Canberra is well placed to lead in the production and consumption of clean energy and I would love to see more investment in photo-voltaic and solar thermal electricity generation. The foresight of the ACT Labor government introducing a feed-in tariff creates the pre-conditions for a commercially viable future for renewable energy. We also have the highest percentage of people in our community opting in to purchase the 'green' energy.

The Rudd Government is also increasing the Renewable Energy Target, so that by 2020, the equivalent of all Australia’s household electricity comes from renewable sources like wind and solar.

The Rudd Government is providing $650 million through the Renewable Energy Fund and Energy Innovation Fund to support the development and deployment of renewable energy technologies in Australia. These policies are expected to see the renewable energy sector grow to 30 times its current size by 2050, creating thousands of jobs.

Finally, some elements of the Stimulus Package announced to shield Australia's economy from the worst impact of the global financial crisis have been geared towards smart strategies to further reduce energy consumption, such as free insulation for around 2.2 million homes.

Kate Lundy is the ACT Labor Senator