Australia will need to do more to phase out older, coal-fired power stations and promote renewable energy after crucial international talks in Paris next month, according to federal Environment Minister Greg Hunt.
In a speech highlighting the changed focus of the Turnbull government towards renewable energy, Mr Hunt will say Australia's move to wind and solar will transform the nation's electricity sector.
He will tell an energy conference in Shanghai on Tuesday, Australia will invest more in battery storage and other new technology to move away from fossil fuels - a move which should be mirrored by the private sector. 
"It is important not to underestimate the challenges in moving to lower emissions energy and meet ambitious climate change targets," Mr Hunt will tell the Bloomberg Future of Energy summit in China.
"The transformations required are significant and financing the energy infrastructure of the future is a major opportunity for investors."
Prime Minister Malcolm Turnbull will join Mr Hunt as part of Australia's delegation to the next month's negotiations. On the table, Australia has proposed emissions reduction target of 26 to 28 per cent by 2030.
The second auction from the Emissions Reduction Fund will open on Wednesday, with 384 projects bidding for funds. The results will be made public next week.
In the first auction, 43 companies were awarded contracts worth $660 million to eliminate 47 million tonnes of carbon that otherwise would have entered the atmosphere, with an average price of just under $14 a tonne.
A further $1 billion is expected to be allocated in the second auction, which has increased speculation the federal government will need to top up the Emissions Reduction Fund before next year's election.
Melbourne-based consultants RepuTex predicted the influx of big industry users into the auction could force down the average price of abatement. It predicted forest regeneration, savannah burning projects and coal mine waste gas activities will feature prominently in the second auction.
Mr Hunt will defend the targets as strong in comparison to other nations, saying it would be a tough task to overhaul the nation's energy mix.
"We have set ambitious emissions-reduction targets and will be part of the crucial international talks in Paris at the end of the year," he will say.
"We are playing our part and we will meet our goals, we will aim to do more."
In Shanghai, Mr Hunt will use the speech to defend of the Clean Energy Finance Corporation and the Australian Renewable Energy Agency, two bodies used to finance renewable projects that the former Abbott government tried to abolish.
He will say the agencies will be investing heavily in battery storage technology to make the most of Australia's competitive advantage in roof-top solar photovoltaic systems.
Almost 15 per cent of households have roof top solar with the next largest being Belgium at 7.5 per cent and then Germany on 3.7 per cent.
"Australia's high rate of household solar in the world makes Australia an ideal place to develop storage and battery technology," Mr Hunt will say.
"Morgan Stanley estimates that up to a million Australian households could have solar storage systems by 2020. ARENA has already invested more than $80 million across 20 projects involving storage with a total project cost of more than $200 million."
Mr Hunt will say the Turnbull government was committed to a $350 million package to develop up to 10 large scale solar farms.
Despite the leadership change, Mr Hunt said the Coalition was still committed to the Direct Action Plan and the $2.5 billion Emissions Reduction Fund and accompanying "safeguard mechanism" as the centrepiece of its strategy to reduce carbon emissions.
Key points
Australia will invest more in battery storage.
Coalition is still committed to the $2.5 billion Emissions Reduction Fund.