CANBERRA, Aug. 13 (Xinhua) -- Australia's Prime Minister has announced 20 million Australian dollars (13.5 million U.S. dollars) in funding to boost the nation's domestic recycling industry.

Scott Morrison on Tuesday said that the initiative, which will fund innovative recycling projects, was a significant step after state and federal government on Friday agreed to ban the export of paste glass, paper, plastic and tyres.

According to the Australian Broadcasting Corporation, Australia exported 4.5 million tonnes of recyclable waste in last financial year, mostly to Asia. But of the plastics, only 12 percent was actually recycled.

Countries that received the rubbish such as China, Malaysia and Indonesia have now moved to ban the waste sent by developed countries.

"We are committed to protecting our nation's environment while also building our capacity to turn recycling into products that people want and need," Morrison said in a statement on Tuesday.

"By engaging industry and researchers we can make sure we're seeing these changes introduced in a way that cuts costs for businesses and ultimately even creates jobs."

Under the initiative grants of up to three million Australian dollars will be made available for innovative recycling projects through the Cooperate Research Centres Projects (CRC-P) program.

"This funding will strengthen Australia's recycling industry and help us achieve higher recycling rates," Karen Andrews, the Minister for Industry, Science and Technology, said.

"Boosting our onshore plastic recycling industry has the potential to create over three times as many jobs as exporting our plastic waste, ensuring a more sustainable and prosperous future."