Mixed bag on climate in the federal budget

Climate activists and the oil and gas industry are unhappy at parts of the federal budget, with a mixed bag of measures for the environment and energy sector.

The Morrison government's 2021/22 budget revealed on Tuesday confirmed $1 billion on measures to lower emissions and $58.6 million to support an expansion of the gas industry.

While that has been welcomed by the sector, the Australian Petroleum Production and Exploration Association is unhappy with a new levy.

The temporary levy will apply to offshore petroleum production to recover costs of decommissioning the Laminaria-Corallina oil fields, which are situated in waters off the coast of Darwin.

The levy will end when all costs associated with decommissioning have been recovered.

"This will ensure taxpayers are not left to pay for the decommissioning and remediation," the budget papers say.

The government has not quantified the levy, citing commercial sensitivities.

The government could have approached the issue differently, association boss Andrew McConville said.

"A new levy on the entire (offshore) oil and gas industry is a terrible precedent and could have serious repercussions to Australia's economy and to jobs," he said.

While Treasurer Josh Frydenberg delivered his budget speech in Parliament House, young climate activists were setting up a candle-lit message for him on lawns outside.

Members of the Australian Youth Climate Coalition wrote "fund our future, not gas" to oppose taxpayers' money being spent on the fossil fuel sector.

The budget also includes $173.6 million to help update the gas industry's roads in the Northern Territory.

Energy Minister Angus Taylor outlined the government's plan for long-term fuel security, which involved payments to oil refineries to ensure they stay open.

Greenpeace is unhappy, saying the oil industry is a key driver of climate change.

"The federal government should be investing in electric vehicle infrastructure and the electrification of our transport systems, which currently rely on oil and contribute around 19 per cent of Australia's domestic emissions," the organisation's spokeswoman Nikola Casule said.

Budget morning began with climate activists staging a protest to try and stop commonwealth cars - used to ferry politicians about when they're in Canberra - from driving to Parliament House.

Extinction Rebellion protesters blocked the entrances to Canberra's COMCAR depot early Tuesday morning.

A 21-year-old man was later charged.