For the first time, G20 countries have been assessed on how competitive they will be in a low carbon global economy and Australia has been found lacking.
Environmental groups point the finger at prime minister Rudd as Australia trails behind in the global climate change race.
The G20 Low Carbon Competitiveness Report positions Australia as 16th, with only Turkey, Russia and Saudi Arabia requiring bigger turnarounds to reach a global target.
"There's no place for further handouts or delay in this Australian and global productivity and competitiveness challenge,” Climate Institute CEO John Connor said. ??"Many of our trading partners are moving faster and we risk missing opportunities for investment, jobs and profits in clean energy emerging industries,” Conner said.
France, Japan, the United Kingdom, South Korea and Germany hold the top five positions in the low carbon competitiveness index.
Only Mexico and Argentina are currently improving their carbon productivity rate at a rate which, if continued, will meet their share of a 450 ppm global target by 2020.
While its carbon productivity is improving, Australia's low ranking stems from its carbon intensive exports, low use of clean energy and high consumption of transport fuels.
"This report underscores the urgency of preventing further handouts for big polluters, for economy wide reforms with a stronger Carbon Pollution Reduction Scheme and for more decisive energy efficiency measures to improve Australia's carbon productivity," Connor said.
"It also highlights the importance that world leaders gathering next week for UN and G20 meetings to increase financial and investment incentives for clean technologies in developed, but particularly developing, countries," he said.
"This is vital to building an ambitious outcome in Copenhagen, which could be the engine for accelerating low carbon growth."
