The DCCEE will be merged into the DIISRTE. It will become the Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education.

Meanwhile, the government has announced that the energy efficiency functions previously carried out by the Department of Climate Change will be merged into the Department of Resources and Energy.

The detailed policy design work and legislation for the carbon price has now been completed and the carbon price is being implemented.

Accordingly the government has decided that a separate Department is no longer required for this policy work. DCCEE’s climate change functions will be merged into the DIISRTE.

"Climate change is an environmental problem which requires an economic solution. That is why we are merging the responsibility for climate change policy into the Department responsible for driving innovation and industry policy in our economy," said Minister for climate change Greg Combet.

"Current resourcing for climate change policy work will be maintained under these new arrangements. We are maintaining the public service infrastructure and resources needed to continue driving and administering this reform.

"The CER will remain an independent agency with responsibility for administering the carbon price, the Renewable Energy Target and other key policy measures."

In other changes, Western Australian MP Gary Gray has been promoted to Cabinet as Minister for Resources and Energy, Tourism and Small Business.

Climate Spectator claimed today that the appointment of Gary Gray "makes good sense from the interests of the mining and oil & gas sectors. Holding a marginal seat in WA and having worked as the director of corporate affairs for Woodside Energy, he will have a finely tuned ear to the needs of these industries."

"However there are some significant worries about his appreciation of the need to integrate climate change issues into energy policy considerations," it added.

"Gary Gray was one of the founders of the Lavoisier Institute, a group that has probably done more than any to spread misinformation about the science of global warming in Australia. According to the The Age, in 1993 Gray said the evidence linking human activity to climate change was 'pop science'."

"In 2007 he said he regretted the comments but added there needed to be "intellectual challenge and debate" on the science of human induced climate change. He is still yet to publicly acknowledge that the bulk of scientific evidence indicates that burning of fossil fuels will lead to significant warming of the globe," Climate Spectator concluded.