The Federal Government has committed $4.5 billion to clean energy in the 2009-10 Budget, which it says will reduce emissions and boost employment.

Under the plan, which includes $1 billion in existing funds, the Government aims to have 20 per cent of Australia's electricity coming from renewable sources by 2020.

The funding will include $2.4 billion in low-emissions coal technologies as well as $1.6 billion to position Australia as a world leader in solar energy technology.

The clean energy initiative will also provide $465 million to establish the Renewables Australia body, to support research into renewable energies.

Climate Change Minister Penny Wong says the funding will stimulate local economies.

"The Australian Government Climate Change Strategy provides the long-term framework and confidence required to create the new jobs and business of a low-pollution future," she said.

"The Government is also making a substantial investment in developing low-carbon energy technologies, giving investors the confidence required to back low-emissions technologies and industries to assist Australia's transition to a low-pollution future."

An additional $300 million will be added to the Climate Change Action Fund under the Carbon Pollution Reduction Scheme, however this funding will not be handed out until 2013-14 and will be rolled out over two years. Read on about the Australian clean energy budget