Labor plans to abolish Abbott government emissions fund

THE Abbott Government's multi-billion dollar emissions reduction fund would be abolished and replaced with renewable energy funding under a Labor climate change plan.

Labor leader Bill Shorten gave a speech on Friday outlining his plans to "put a stop" to the fund that pays large polluters to cut carbon emissions.

He said the Opposition would "not continue to subsidise windfalls for companies that are already acting".

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Mr Shorten said some $4.3 billion could be saved by cutting the ERF, the centrepiece of the government's much-criticised climate policies.

He said that the money would be directed to renewable energy projects.

Labor's announcement follows this week's announcement of the government's new carbon emissions reduction target.

Mr Abbott said the target was to reduce Australia's 2030 emissions by 26% from 2005 levels. This is a greater reduction than the 2020 target of 20% from 2000 levels.

But the 2030 target is markedly below the 40-60% recommended by the Climate Change Authority.