The Climate Institute CEO John Connor said: “These signals from two of the developing world’s economic powerhouses are positive but we need more detail to see how far it may go in helping to break the current deadlock in the global talks.

“The pressure is now on developed countries, who are responsible for two-thirds of emissions in the atmosphere, to follow through with ambitious targets and commitments to deliver increased financing to boost developing countries efforts to adapt and grow in the low carbon economy.

“Prime Minister Rudd faces a key test in his speech to the UN General Assembly tonight (Australian time) and in coming days at the G20 to give clear commitments that Australia will play its fair part in this financing challenge.”

“Talk of a ‘grand bargain’ with developing countries is hollow haggling without predictable investment commitments.”

Three key tests for Australian and global leadership are to:

1. Recognise international financing needs for developing countries are at least US$150 to 160 billion per year by 2020.

2. Back international and national financing mechanisms to ensure public and private funding can meet these needs – and ensure Finance Ministers finalise recommendations on mechanisms at their November G20 meeting for unequivocal input to the December Copenhagen UN meeting.

3. Ensure a fair climate deal at home and internationally through strengthening and passing the CPRS with international financing provisions that also ensure a fair and equitable transition for Australian workers and low-income families.

“The moves by China and India are positive for the climate talks and they also confirm the global low carbon economic train has left the station.

“Australia has a dual challenge of helping accelerate that train but also not being left behind.

“This means supporting global and national financing, but also preventing CPRS negotiations giving further handouts to top up the billions already being grabbed by our big polluters.

Current assistance under the CPRS to big polluters in 2015 is estimated to be between $15 and 20 billion dollars.

“We need to be building Australia’s low carbon competitiveness not prioritising protection for our polluters.”