More than $1 billion will be pumped into producing low-emission fuels in a bid by the federal government to help heavy industries across the nation curb their carbon pollution.

The spending promise comes as a former defence chief warns runaway climate change could cause a millions-strong influx of regional climate refugees into Australia as areas become unliveable.

Labor is preparing to unveil its 2035 emissions-reduction target, a key milestone on the way to net zero carbon emissions by 2050, within days.

In the lead up to that announcement, the government has promised a $1.1 billion funding boost low-carbon fuel production such as renewable diesel and sustainable aviation fuel.

The exact design of the 10-year Cleaner Fuels Program is still being worked out, but it will likely involve

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