He was re-elected at the 2007 election as a URP candidate, after which he was appointed Minister for Environment and Conservation by Prime Minister Michael Somare. Allan was an advocate for addressing climate change in this capacity, telling the United States at the 2007 United Nations Climate Change Conference "if for some reason you are not willing to lead, leave it to the rest of us and please get out of the way". In February 2008, he stated that three foreign firms had attempted to bribe him with free travel in order to fast-track approvals for their investments. In April 2008, he announced that no further exploration licenses along the historically sensitive Kokoda Track would be approved while the Somare government was in power.