BlueScope Steel will share in $1.1 billion of new steel industry assistance funding announced by the Federal Government to soften the impact of its carbon tax.

The move is expected to ensure the steelmaker pays next to nothing for at least the first four years of the carbon scheme.

The extra funding, which includes a $300 million steel industry assistance plan and an $800 million clean technology fund, is designed to keep the struggling steelmaker in Australia.

But the $300 million was not part of the carbon pricing deal reached with the Greens and Independent members though the Multi-Party Climate Change Committee, so it will not become a reality unless the Government can muster the numbers to get it through Parliament.

Also announced today, and separate to the climate change deal, is a $1.26 billion coal-sector jobs funding package, designed to assist coalmines that reduce their emissions intensity.

The coal industry has also been promised $70 million to help develop methane gas reduction technology