Qantas has urged the Abbott government to design its direct action climate policy in a way that could encourage more efficient aircraft, better air traffic management and the use of less fuel.

Among early submissions on the design of the direct action plan - made public recently - Qantas, along with other companies, recommends the government think broadly about what projects it might fund with its $1.55 billion emissions reduction fund.

Qantas are pushing for more efficient aircraft. Credit:Getty Images

Qantas says it has identified several projects that could reduce emissions including investing in a renewed fleet of fuel-efficient aircraft, using fuel efficiently and improving air traffic management.

''With access to co-financing or other government support, such as funding under the Emissions Reduction Fund, this abatement and the long-term economy-wide benefits that accompany these projects could be unlocked,'' the submission says.