New Delhi (PTI): Terming the financial meltdown as a "major distraction" in the fight against climate change, environmentalist R K Pachauri today hoped that "things will happen in the right direction" as the new US administration is being "very proactive on the issue".

Talking to reporters, the UN climate panel chief said: "The Obama administration is very proactive on this issue. He has promised to revive the economy by giving green jobs.

"But it will take them a little time. I think the speed at which the new administration is moving gives some reassurance that things will happen in the right direction."

The US and China are the top greenhouse gas emitters.

He said industries across the globe are pressing governments to dilute policies on climate change.

He also asked Indian industries to address environmental issues, saying climate change issues if not taken seriously now will affect the economy in future.

Meanwhile, Pachauri rejected suggestions that cheaper oil can undermine the move to cleaner fuel, saying, "anyone who understands the oil market, the energy market will know that we shouldn't be fooled by the current lull in prices."

He said India has been consistent in its demands that the developed world should take the first step. However, Pachauri said India should implement 'National Action Plan' on climate change to make the world realise that the country is serious on the issue and also "we will benefit locally".