Coal industry looks to cut greenhouse gases. 16/03/2006. ABC News Online

Coal producers have set aside more than $300 million to develop ways to reduce greenhouse gas emissions in Australia.

The COAL21 Fund is considered a world-first, with the major players paying a voluntary levy to contribute to cutting greenhouse gas emissions.

Nineteen coal companies are part of the new fund.

Mark O'Neill, from the Australian Coal Association, says it is a significant step for the industry.

"Today the coal industry is putting its money where its mouth is," he said.

"We as an industry recognise that greenhouse gas emissions have to be cut significantly."

Mr O'Neill says the ultimate goal for the industry is to produce emission-free coal-fired power stations.

He says while some power producers are doing their bit, others are not.

"There are a number of projects actually being brought forward by power generators which is very pleasing and the ones that we're working with are very prepared to obviously accept their share of the burden here," he said.

"Not all power generators are coming forward with projects and we'd like to see the whole black coal power generation industry some how making a contribution."

Conservationists have welcomed the plan, but say funding research for fossil fuels is not necessarily the only answer.

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