The Australian Federal Government has released what it says is the world's first framework for Carbon Dioxide capture and geological storage.

The process for geo-sequestration involves capturing greenhouse gas emissions, before they're released into the atmosphere, and storing them underground.

The Federal Minister for Resources and Tourism, Martin Ferguson, says the draft legislation has been referred to the House of Representatives for review.

If passed, the department of resources and energy will recommend the best offshore sites.

Mr Ferguson says the framework ensures the project won't impinge on oil and gas extraction rights.

"The carbon dioxide capture legislation is also about making sure that we get a proper understanding between those who want to store carbon emissions as against the rights of those who want to extract oil and gas, and that's one of the complicated objectives of the legislation."

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