Australia's premier agency funding research and development of clean energy will start to decline this financial year as its funds run out and the Morrison government weighs up whether to extend its life.

The energy and emissions reduction minister, Angus Taylor, said funding for the Australian Renewable Energy Agency (ARENA) was guaranteed until 2022 but has declined to confirm it will receive further funding.

It comes as the government touts the potential for technology to drive greenhouse gas emissions lower without a national goal beyond 2030.

The outlook for the future funding of the Australian Renewable Energy Agency remains unclear. Credit:Joe Armao

Earlier on Wednesday, Treasurer Josh Frydenberg told ABC Radio ARENA had done a good job but also avoided committing fresh funds to the $2.5 billion agency set up in 2012 by the Gillard Labor government.