Environment Minister Greg Hunt is set to make the announcement at the World Government Summit in Dubai late on Tuesday, Australian time.

In a statement, Mr Hunt said the $250 million Community Housing Program will "contribute to the construction of as many as 1000 new energy-efficient homes Australia-wide, which is great news for our cities and for families and low-income Australians requiring affordable housing".

"By financing the development of homes, which have the latest energy efficient measures built in, we can lower their long-term energy needs and also minimise their impact on the environment," he said.

"This is a very practical way to drive down household energy costs, which can make a real and positive difference for low-income families."

Mr Hunt said the finance would help community housing providers invest in new dwellings built with energy-efficient materials. It could include double-glazed windows or high-quality insulation and ventilation to reduce the need for heating and cooling.

The program is being delivered by the Clean Energy Finance Corporation. The government, under the leadership of Prime Minister Tony Abbott, tried to scrap the agency, but was blocked by the Senate.

Asked at a Senate estimates hearing on Monday if it was still government policy to abolish the agency, Liberal senator Anne Ruston said "it is".

Labor's environment spokesman Mark Butler said it was "disingenuous to the extreme to promise some of our most vulnerable communities improved energy efficiency through the CEFC when they intend to abolish it at the first opportunity.

"It's said an empty vessel makes the loudest sound, and true to form, Minister Hunt's $250 million announcement is as empty as his and Malcolm Turnbull's commitment to tackling climate change," he said.

"Australians deserve better than Malcolm Turnbull saying one thing on climate change and doing the opposite."

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