Australian Prime Minister Kevin Rudd said on Saturday that China and Australia should cooperate in dealing with climate change.

Speaking at the opening ceremony of the Boao Forum for Asia (BFA) annual conference, the newly-elected Rudd said climate change was a common issue facing the whole world.

"Every country has its own challenges, but climate change is believed to be the biggest moral and economic one," he said.

"The starting point for the Australian government on the issue is that people will surely pay huge costs if no action is taken to that effect," he said, adding his country was working to build a framework to address climate change.

"Today, we are all living in the same global village," he said. "The West and the East should be integrated to solve the climate change problem during the process of globalization."

He said Australia should enforce cooperation with China and hold informal talks on the issue of climate change.

Rudd, a Chinese speaker, praised China's efforts to increase its forestation, saying the country was playing a leading role in improving its green space.

He added Australia and other countries shared the same responsibility and should make joint efforts in reducing discharge and promoting sustainable development, including the protection of trees and forests.

He suggested setting an emission ceilings under the United Nations climate framework to help promote sustainable development.

Australia was devoting its efforts to becoming a real friend of China and would conduct constructive cooperation for win-win results with the country in different aspects, including climate issues, Rudd said in Chinese ending his address.

(Xinhua News Agency April 13, 2008)