Australia is well placed to take advantage of the $71 billion clean technology market but will need the support of business and investors, Shadow Minister for Climate Change Peter Garrett said.

"We believe that Australia has the potential to be a regional hub for clean technology but that will require genuine investment domestically in clean energy and a suite of policies including greenhouse emissions targets that enable this growth," Garrett told delegates at a Citigroup conference in Sydney yesterday.

"In some parts of the world, investors are talking about the low carbon economy as 'the next industrial revolution'. A key economic question for Australia is whether we will embrace this economy, and in fact, whether we will drive it," the former lead singer of Midnight Oil said.

Quoting figures from the United Nations, Garrett said projections suggest that the wind, solar, biofuels and hydrogen markets alone will grow to $226 billion by 2016.

While he was pleased that 12 Australian superannuation funds have already signed up to United Nations Principles for Responsible Investment, they still have a critical role to play in building an economy that supports renewable energy.

"The finance industry and superannuation funds have left the government behind in this debate."

"We want to work closely in partnership with business and the finance industry. Labor will invest in innovation and research in clean technologies, build new market opportunities and drive energy efficiency improvements across the economy," he said.

He said Labor would also ratify the Kyoto Protocol.

"If you don't ratify such agreements, you can't vote on global climate changes. You simply can't control the outcome," he said.