The ACT Government has scrapped its proposed bar and nightclub lockout laws in the face of opposition from the Greens, businesses and the community.

The Government was considering enforcing a 3:00am closing time or increasing fees for businesses selling alcohol after that time.

The proposal was aimed at reducing the amount of alcohol-fuelled violence in Canberra.

But similar changes introduced in Sydney have been widely condemned by business owners and patrons.

On Tuesday the Greens announced they would not support the changes, effectively blocking the proposal.

"The Greens didn't support restrictions on trading hours because we want Canberra to have a thriving night time economy," ACT Greens MLA Shane Rattenbury said.

"It would shut down opportunities for nightlife and entertainment in Canberra, when in fact we should be moving in the other direction.

"Dealing with alcohol-related harms is important, but we don't need to do it by curbing Canberra's nightlife.

"We can have safety and entertainment at the same time."

Emphasise on smaller venues and transport: Rattenbury

Mr Rattenbury said he believed there were other ways to reduce street violence.

"We believe an emphasise on smaller bars, restaurants and live music is one of the key issues to addressing alcohol-fuelled violence," he said.

"So there are options for people to go out and be entertained without having to just drink alcohol.

"Certainly having good transport options for people to get home at the end of the night safely is another important part of maximising the ability for people to go out without getting involved in alcohol-related violence."

Chief Minister Andrew Barr denied he had been "rolled" by the Greens.

"Well without me it wasn't going to get up and I didn't support it and that was the most important factor in the decision," he told 666 ABC Canberra.

"I'm not going to go through in great detail the position of each individual Cabinet minister, but suffice to say the Attorney-General [Simon Corbell] put forward a discussion paper and it had the support of all of his colleagues."

But Mr Barr said community and Cabinet response to a possible 3:00am closing time was mixed.

"The issue here is to what extent does the poor behaviour of a very small number of people dictate a response that impacts very negatively on a much larger number of people," he said.

Attorney-General Simon Corbell said the Government would continue to work with police and venues to reduce street violence.

"There is no place in our city for alcohol-fuelled violence and we will continue to work to keep our streets safe," he said.

The Government will continue to introduce legislation later this year that will include initiative to "lower licence fees for lower risk venues and red tape reduction for cafes".