A woolly art installation using more than 1,000 hand-knitted pieces stitched by people around the world has gone on display at the Art Gallery of Ballarat.

The WARM project hopes to get people thinking about climate change and sustainability through the art of wool craft.

Lisa Kendal, co-creator of the project, said a discussion with a sheep farmer who was struggling with changing weather patterns prompted the idea.

"He just said, 'one of the problems with the world is we've forgotten to warm ourselves with wool, we've become so dependant on fossil fuels'," Ms Kendal said.

"We just thought that was a gem of an idea."

More than 200 knitters from around the world have contributed to the project, including a refugee group from Germany.

Fibre artist Georgie Nicholson came up with the individual knitting patterns, ranging from wind turbines to intricate flora such as egg-and-bacon flowers and common everlastings.

"All the flowers are Australian native flowers and they're actually all indigenous to (the Ballarat) area," she said.

"These are flowers that if you go into the natural environment, they'll actually be flowering."

The Ballarat knitting installation uses only natural wool. ( ABC News: Michael Barnett )

She said every piece in the artwork was also designed to be reused, with some segments of the background doubling as wearable mittens and beanies.

Even the gum leaves are designed to be used again as bookmarks.

Project promotes environmental awareness

Ms Kendal said she wanted the project to be a gentle way for people to engage with the confronting issue of climate change.

She said the fact wool lasted forever and came from a sustainable resource could help people think about the everyday choices they made, and how they could be impacting the planet.

"In fact, a lot of the things we wear are made from fossil fuels, they're made of plastics. These days you'll get your new fluffy fleecy thing that's actually made out of recycled bottles," she said.

"We don't have to use those resources.

"We can use resources that don't damage in the first place."

Ladies from the Ballarat branch of the CWA contributed strongly to the project.

Knitters from the local CWA were among those to contribute to the art installation. ( Supplied )

Marion Wardlaw made more than 20 pieces, which took her more than 30 hours.

She said knitting for the artwork had made her more aware of climate change.

"It was great. I met new ladies, made new friends and it was a chance to achieve what [the project] is trying to achieve," she said.

However, Ms Wardlaw was reluctant to share what the women spoke about during all those long hours knitting.

"Ooooh, some of that's secret women's business," she laughed.

"No, I think just life in general and this project. It's really got people talking."

Artist Lars Stenberg came up with the overall design, which emulates the environment around a rehabilitated coal mine.

He also had the special task of arranging the knitting on the final project.

"Each of these pieces is like working with precious jewels," he said.

"I feel there's a sort of responsibility to take care of all the pieces people have knitted with love and time."