Millions of tonnes of carbon dioxide could soon be stored deep underground under new laws designed to help tackle climate change.
The Offshore Petroleum Amendment (Greenhouse Gas Storage) Bill 2008 and related bills passed the Senate with several technical opposition amendments.
The bill authorises the transportation by pipeline and storage of greenhouse gas in deep geological formations under the seabed.
The government also agreed to amendments to increase the environmental liability of entities who undertake the projects.
Labor MP Jan McLucas said burying greenhouse pollution underground - Carbon Capture and Storage (CCS) - is a key part of Australia's response to climate change.
"We are honestly trying to deal with the reality in the practical way that will protect our economy, that will protect our environment, that will ensure that icons ... like the Great Barrier Reef have the best chance of being protected," Senator McLucas said.
"I support this legislation to ensure we facilitate as best we can the reduction of carbon in our atmosphere with the net benefit to the world as a whole."
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