"We're clearly determined that we need to do more on the environment," Harper told reporters. "We recognized that particularly when it comes to clean air and climate change that Canadians expect a lot more."

"The public has been clear to us they want that to be a priority. I think it should be a priority," he said.

Ambrose had introduced a bill in mid-October to reduce Canada's CO2 emissions by 45-65 percent by 2050, based on 2003 emissions. But it was widely panned for allowing emissions to continue to rise until 2020.

Canada had agreed under the Kyoto Protocol to reduce carbon dioxide emissions to 6.0 percent below 1990 levels by 2012, but a recent government environmental audit found emissions had instead increased by 26.6 percent.

"We realize that Canada's environmental report card is probably the worst of the industrialized countries," Harper said. "The situation is not easy ... We have a lot of work to do."

Ambrose will take over as intergovernmental affairs minister, a role Harper said better suits her abilities.

Meanwhile, former House Leader Rob Nicholson was named attorney general, replacing Vic Toews, who moved to the Treasury Board.

Diane Finley replaced Monte Solberg as immigration minister while Finance Minister Jim Flaherty kept his job, as expected.

International Trade Minister David Emerson, Defense Minister Gordon O'Connor and Foreign Minister Peter MacKay are also staying put. But MacKay has a new secretary of state, Helena Guergis, to assist him.

The cabinet shuffle, 13 in total, comes as opposition parties threaten to defeat the government's next budget expected in March, automatically triggering an election.

Harper's Conservatives were swept into office less than one year ago, ending 12 years of Liberal rule, but minority governments typically last an average of 18 months in Canada.

Public opinion polls say Canadians will vote in another divided Parliament, since neither the Liberals nor the Conservatives have enough support to secure a majority government.

But the Liberals elected a new leader in December and are eager to test his grit while the separatist Bloc Quebecois is concerned about eroding support for Quebec independence as the Conservatives and Liberals try to woo Quebecers.

Both leaders, as well as the head of the New Democratic Party, signaled their intentions to make the environment a key election issue by bashing the Conservatives' record and touting alternatives at every turn.

Harper said his new team would pursue: lower taxes; controls on spending; restoration of a fiscal and jurisdictional balance between the federal and provincial governments; tougher policing; a brawny foreign policy; and dramatic environmental action in 2007.

In addition to the roster changes, he also created a new cabinet committee to delve into environmental and energy security matters.

"The Committee will pursue practical, results-oriented solutions to decrease Canada's greenhouse gas emissions, reduce pollution and improve the health and well-being of Canadians," Harper said.

Environmentalists were unmoved, however.

John Bennett of the Sierra Club Canada told AFP: "Shuffling the chairs on the deck on the Titanic wouldn't make any difference as long as the direction wasn't changed and we haven't seen any change in direction from this government or rhetoric indicating that they are going to do anything different."

"We have to hear from this government that they are committed to do everything they can to reach the Kyoto targets and until we hear that, it does not really matter who the minister is."

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