Water security efforts get a significant share of funds totaling $2.3 billion over five years to counter or cope with climate change.

 ''The effects of climate change mean most of Australia's cities and towns have less water, and we can no longer on rainfall to supply all our drinking water,'' Minister for Climate Change and Water Penny Wong said, in a statement accompanying the Federal Budget.

 The National Urban Water and Desalination Plan will get $1 billion, offering cities of more than 50,000 people access to funds to develop new water supplies.

 Private companies, utilities and local and state governments will be able to apply for grants and tax offsets to support desalinations, recycling and stormwater harvesting.

 Projects in Adelaide and Geelong will get funding totaling $50 million for two recycling projects.

 All up, some $12.9 billion will be spent over the long-term on the government's Water for the Future plans. Access to those funds, including the $1 billion announced today, are conditional on state and territory governments meeting agreed water reforms.

Other big ticket items aimed at curbing greenhouse gas emissions include $500 million over six years for the Renewable Energy Fund, $500 million spread over eight years for the National Clean Coal Fund, and $150 million over four years for Energy Innovation Fund.

The government also intends to allocate $500 million over five years for the Green Car Innovation Fund to develop low-emissions vehicles, but the fund doesn't kick in until 2011-12.

 Other businesses, meanwhile, get $240 million over four years to improve their energy efficiency.

 Households get modest encouragement to switch to solar power, or install more energy-and water-efficient products, with $300 million earmarked over five years.

 Owners of rental accommodation will get $150 million to encourage the installation of insulation in rental accommodation.

And farmers will get some help - $130 million over four years - to help prepare for climate change.

With an eye to the challenges faced by countries in the region, including changing weather patterns and rising sea-levels, the government plans to offer $150 million over three years.

 BusinessDay