State and territory governments as well as the private sector would be encouraged to co-invest up to $2 billion in new technologies as part of an overhaul of the Morrison government's $2 billion Emissions Reduction Fund (ERF).

An extensive review lead by former Origin Energy chief executive and former Business Council of Australia president Grant King found the ERF, which has been rebadged as the Climate Solutions Fund, was not providing the best incentives for carbon abatement projects.