Minister for Mineral Resources Ian Macdonald said he’s disappointed and concerned by the decision by the US Government to end its commitment to the world's leading clean coal experiment.

The US move to withdraw from the $2 billion FutureGen project comes just weeks after coal and power companies recommended building the clean coal plant in Illinois rather than in Texas.

"I am extremely disappointed by the move - clean coal is about the future and this issue is far too important to play politics with," Mr Macdonald said.

"All the key global reports on carbon including the IPCC, Stein report and statements by Al Gore have made it abundantly clear that clean coal technology is an urgent and necessary strategy to combat enhanced atmospheric carbon levels.

"This technology can work and is currently under advanced demonstration at many sites around the world.

"The Iemma Government is committed to clean coal technology and has invested more than $420,000 in the last 12 months on projects which specifically assist clean coal research.

"The NSW Government recently set up a Clean Energy Fund to support renewable energy and clean coal research.

"Coal producers have also committed through the Australian Coal Association’s Coal 21 Fund, a voluntary levy, which plans to raise an estimated $1 billion over the next decade.

"Clean coal can greatly reduce greenhouse gas emissions while still maintaining a viable standard of living.

"It is more important than ever that Governments and industry work together towards reducing climate change.

"Let’s hope this sudden change in direction by the US doesn’t undermine all the important research and development which has already been carried out."

Media contact: Lyndall Derrig 0400 462 447