The ACT government is set to introduce a price on carbon in an attempt to reduce its own emissions.
The territory government outlined in its 2021/22 budget, handed down on Wednesday, plans to implement a "social cost of carbon" applied for each tonne of emissions from government operations.
Budget papers showed an interim price would be set at $20 per tonne.
The government estimates the scheme would cost $1.34 million this financial year, but would be able to be offset.
Funds from the cost of carbon are set to go towards projects that will further reduce emissions in Canberra.
The initiative will make money available from infrastructure funds to government agencies to carry out emissions reduction projects such as replacing gas heating systems and transition the government's fleet to zero-emission vehicles.
The project will be carried out to "demonstrate how such a model can work to support the reduction of emissions from government operations", according to the budget papers.
