Farmers will soon be able to access a new fund to help find ways to store carbon in soil as a way of reducing emissions.
The latest round of funding as part of a national program will see $20 million set aside for land management projects to improve soil carbon levels.
Grants of between $500,000 and $5 million will be available for farmers and those in the agriculture sector to help develop solutions to measure soil carbon.
Increasing amounts of carbon stored in soil, through ways such as increasing plant cover or land management practices, has been shown to help reduce emissions in the atmosphere.
Climate Change Minister Chris Bowen met with his state and territory counterparts on Friday in the NSW Hunter Valley.
Ministers agreed to five priorities for the next 12 months, including investment in Australia's climate change adaptation and resilience, engagement with regional and First Nations communities on decarbonisation and steps to transform the energy system to align with net zero emissions goals.
A decarbonisation working group will be established to ensure clear and consistent reporting principles on how it is progressing towards its net zero targets.
Mr Bowen said the new decarbonisation program would allow farmers to directly contribute to lowering emissions.
"Farmers are at the frontline of climate action and our government will continue to back them to develop technologies that will help them store more carbon, improve farm productivity and create regional job opportunities," he said.
"We will continue to work with the agriculture sector to help them manage their soils, reduce emissions and actively participate in the carbon market."
It is the second round of the $50 million program.
The first round saw almost $29 million of grants awarded to develop soil carbon measurement technologies over the next two years.
Agriculture Minister Murray Watt said managing soil carbon levels would be critical to the industry.
"We need to continue to improve management of our soils, as it contributes to rainfall retention, physical stability and erosion management, while supporting Australia's climate and disaster resilience through carbon cycling," he said.
"Innovative soil technologies across a range of Australian agricultural landscapes are key to this, and that's why the government remains committed to supporting them."
