Direct action money is 'ineffective'

A new analysis of the government's emissions abatement program finds much of the money is spent on projects that would go ahead anyway.

An economist from the Australian National University says the government's Direct Action climate change policy is not working. Source: AAP

Taxpayers are is paying companies for emissions reduction projects that may not need government help, a new analysis shows.

This means much of the $1.7 billion Direct Action program had been spent ineffectively and emissions reduced by less than anticipated, ANU climate economist Paul Burke says.

"Unfortunately, projects that would have gone ahead even without a subsidy - 'anyway' projects - have a cost advantage that makes them well placed to win the auctions," he said on Monday.