Energy Minister Josh Frydenberg announced the government may instruct the Clean Energy Finance Corporation to invest in so-called 'clean coal' power plants.
The government also suggested it will also try to change the rules governing the fund so it can invest in carbon capture and storage -- a controversial technology that can lower the CO-2 emissions of coal power stations by pumping the gas back into the ground.
The Act that governs the fund only bans it from putting money behind two technologies: one is nuclear power, and the other is carbon capture and storage.
Now, the government says it may try to lift the ban on the latter.
Prime Minister Malcolm Turnbull says carbon capture and storage is worth exploring.
Carbon capture and storage is a controversial technology whereby carbon dioxide emissions from coal-fired power plants are captured and pumped deep underground.
Advocates of the technology say it can dramatically reduce the CO-2 emissions of dirty generators, while critics say the gas can sometimes leak back out of the ground.
The Greens have joined Labor in criticising the government's plan.
