The Turnbull government won't be adding any money to its "direct action" climate plan in Tuesday's budget.
The Emissions Reduction Fund was originally set up by the Abbott government in 2014 with $2.55 billion for a range of carbon abatement programs, from vegetation management to energy efficiency and transport.
The fund has $265 million left in the kitty, having supported 438 projects at an average abatement cost of $11.90 a tonne.
AAP understands there will be no funds added to the ERF for future auctions, nor will there be funding withdrawn.
The next auction round will be held in June.
A climate policy review released in December last year concluded existing settings were good enough to meet Australia's international commitments to cut emissions.
