Labor and the Greens might not view it as a win but the Turnbull government's plan to direct the Clean Energy Finance Corp to invest in carbon capture technologies marks a retreat.

Back in February, when the government signalled it wanted to end the green bank's ban on carbon capture and storage (CCS) investments, Environment and Energy minister Josh Frydenberg said new coal-fired power stations could also be in the fund's sights.

The government wants the CEFC to be open to support carbon capture and storage. Credit:Michele Mossop

Back then, Coalition MPs were braying for so-called high-efficiency, low-emission coal plants as the way to avoid power cuts like those in wind-dominant South Australia and the near-miss in coal-dependent NSW.