The 40th Pacific Islands Forum, held since Wednesday in this northern Australian city, focused largely on the key issues of climate change and development across the South Pacific.
In his closing remarks, Australian Prime Minister Kevin Rudd, who chaired the meeting, told reporters some island nations face "obliteration" through the effects of climate change.
He said the 50 percent of people in the region live 1.5 kilometers from the coastline, putting them in the direct firing line of rising sea levels and beach erosion.
Rudd said a strong global consensus is required to combat the devastating effects of climate change, particularly in a region which has contributed little in the way of carbon emissions.
"We call upon world leaders to urgently increase their level of ambition and to give their negotiators fresh mandates to secure a truly effective global agreement," the leaders said in their communique.
The group of 15 leaders agreed that the increase in global average temperatures should be limited to 2 degrees Celsius or less, post- 2012.
They also called on countries to reduce their emissions by at least 50 percent of 1990 levels by 2050.
As Australia waits for its emissions trading scheme bill to be passed in the Senate, Rudd said other developed countries should be working toward the same.
"We also call on developed economies to strengthen the seriousness and credibility of their claims at Copenhagen by putting in place domestic policies and legislation now to achieve emission reduction targets," the communique said.
Rudd also announced an A$25 million (US$21 million) joint Australian and New Zealand partnership to research renewable energy initiatives in the region, including solar, wind and wave technology.
Leaders also reaffirmed an "invigorated commitment to lift the economic and development performance" in the South Pacific, in which some 2.7 million people live in abject poverty.
A Cairns compact was issued by the group, aimed at improving the region's development performance through better international coordination of aid and development resources.
A regional trade agreement called PACER Plus, was also bought closer to fruition with the group agreeing to begin negotiations soon.
The forum also reiterated the suspension of Fiji from the body, adding that they were deeply concerned about the deteriorating situation in the island nation.
Fiji was earlier suspended from the forum for failing to hold a democratic election before May 2009.
The military-backed Fijian leader Voreqe Bainimarama seized power of the country in December 2006, but insists he needs until 2014 to fix the country's electoral voting system.
"(Fijians) deserve better. They deserve a prompt and early return to democracy," Rudd said.
The leaders also paid tribute to the families of victims of a ferry disaster in the Pacific island state of Tonga, in which dozens are missing.
Nearly 100 people were onboard the Japanese-built vessel MV Princess Ashika when it sank overnight off the coast of Tonga. Tongan police confirmed that 53 people have so far been rescued.
On Friday, non-forum "dialogue partners" such as Japan and the European Union will meet with Pacific delegations.
The Pacific Islands Forum meets each year to discuss key regional issues.
There are currently 15 forum members: Australia, the Cook Islands, Nauru, New Zealand, Tonga, Samoa, Micronesia, Kiribati, Niue, the Marshall Islands, Palau, Papua New Guinea, the Solomon Islands, Tuvalu and Vanuatu.
