The Abbott government's confidence that its direct action climate policy will meet Australia's emissions reduction target is based on Australia's track record in environmental policy and not on modelling, a Senate estimates hearing has heard.

Senators were told on Monday that the environment department and clean energy regulator had not done any modelling to assess whether the government's emissions reduction fund could meet Australia's 5 per cent emissions reduction target by 2020.

The white paper's suggestion that future energy policy should be "technology neutral" has raised concerns among the Greens and environment groups. Credit:Bloomberg

The emissions reduction fund, which will pay polluters to reduce their emissions, replaced Labor's carbon tax last year.

The first auctions for businesses, which will bid for funds through the scheme, will begin in April.