GTLC acting secretary, Steve Dodd welcomed the State Budget windfall for Latrobe Valley power stations which he hoped would significantly reduce carbon emissions.

The government package included funding for the establishment of a new authority, Clean Coal Victoria which will endeavour to maximise opportunities for brown coal resources.

A new large scale, pre-commercial carbon capture storage demonstration plant will also be built in the Valley.

Mr Dodd said the GTLC was a strong climate change advocate and had worked closely with the government and its plans to improve the environment.

``We are very supportive of the clean coal announcement and its importance in helping reduce pollution and we see the funding as an important asset in tackling pollution,'' Mr Dodd said.

``And of course we are very happy with it and tend to engage with developments related to the clean coal announcement.

``We have always seen ourselves as an integral part of the community in these developments and the government has always seen that.''

Mr Dodd refuted a recent media report which he believed had given the impression the GTLC felt snubbed by the government.

He said the GTLC and unions were happy with their level of involvement in discussions over clean coal projects.

He hoped the funding would now contribute to infrastructure which would create jobs.

Mr Dodd anticipated major financial benefits for the Valley if the clean coal technology proved successful.

``In China, about one day's worth of pollution equals about a year's worth here, so if clean coal technology works out then the clean coal tech could be exported there,'' he said.

``What this means is the Valley would reap financial benefits for its commitment to cleaning up the environment.''

A climate change forum last year highlighted the importance of the GTLC and unions in helping to tackle climate change.

Energy Minister Peter Batchelor attended the forum and stressed the support of trades and labour councils and unions was vital in getting the clean coal technology off the ground.

However, Mr Dodd said while investments in clean coal technology were beneficial, they weren't the ``silver bullet'' solution.

``We don't believe clean coal technology is the complete answer to solving the issue of climate change, it's not the silver or golden bullet, there are other strategies,'' he said.

``But the clean coal technology is a significant part to the solution.''