OTTAWA - Environmental spending in the federal budget focuses the greenbacks on green homes.

The NDP called on the Tories to renew the ecoENERGY Retrofit-Homes homes program and the government complied Tuesday -- pouring an extra $400 million into the initiative.

It offers rebates to help make homes more energy efficient and was initially designed as a four-year program due to end this year. But it proved to be a popular package for a government fending off accusations of ignoring the environment. The Tories topped it up in the last two budgets before extending it in this budget for another year.

The government is also looking farther down the line when it comes to green initiatives.

The Conservatives have allocated $35 million over five years to support climate change and atmospheric research, and a further $58 million over two years for programs to help Canadians cope with the effects of climate change.

While Canada's actions on the environmental file are often pilloried around the world, the government maintains that dealing with climate change is an international effort that can only work if all nations are on board. The budget provides $25 million over two years to continue with Canada's international engagement on the file, including work with the United States.

The government is hoping to reduce greenhouse gas emissions 17 per cent from 2005 levels by 2020, and has focused on regulatory actions to achieve that goal.

"This approach will achieve real emissions reductions, while maintaining Canada's economic advantage and creating jobs for Canadians," the budget says.

Ottawa is allocating $386 million over two years to pursue that course of action. The lion's share would go to regulations designed to address climate change and air quality.

In total, $870 million is to be spent over two years on what the government calls the "Clean Air Agenda."

But the Tories also stuck a green thumb into other pieces of the funding pie.

"Canada is increasingly looked to as a secure and dependable supplier of a wide-range of energy projects," the budget says.

Aboriginal and northern communities are getting $8 million over two years in renewed funding to promote clean-energy technologies, while a further $97 million is being renewed over two years for generalized development of clean energy products.

Sustainable Development and Technology Canada is also to receive $40 million over two years to develop clean technology.

Environment Minister Peter Kent has stressed that his portfolio isn't just about protecting the environment but also celebrating it.

The budget includes the creation of a new national park in Labrador.