National standards and labels will be introduced for household appliances, to help people tackle climate change by picking energy-efficient items.
Today's Council of Australian Governments (COAG) meeting agreed to develop a national strategy on energy efficiency.
With emissions trading due to push up electricity prices from 2010, the strategy aims to fast-track efforts to make homes and businesses greener.
Prime Minister Kevin Rudd said it would be ready by the end of this year.
"This is important, always referred to in the public debate as the low-hanging fruit of the climate change agenda," he said.
"(It's) the best way, the most effective way, and the earliest way, of bringing down greenhouse gas emissions."
COAG said various energy-efficiency programs would be operating before emissions trading started.
The meeting also looked at plans to develop carbon capture and storage (CCS) technology.
The states agreed to speed up the introduction of nationally-consistent rules on CCS, including rules to cover the burying of carbon pollution underground.
