Labor rules out banning new coal and gas projects despite Greens’ demands

Anthony Albanese’s standoff with the Greens over an election promise has taken another turn as Labor rules out doing one thing.

Labor has ruled out banning new coal and gas projects despite the Greens warning they may block the next stage of the government’s climate agenda unless the condition is met.

The Albanese government wants to overhaul the safeguard mechanism emissions reduction scheme for Australia’s heavy industry, but it must end its standoff with the Greens in order to do so.

Under Labor’s proposed revamp of the Coalition-era cap and trade scheme, 215 big polluters would be required to reduce their greenhouse gas emissions by nearly 5 per cent a year, including by using carbon credits to “offset” their emissions.

The Greens – who hold the balance of power in the Senate – have said they will support the safeguard mechanism legislation as long as the government commits to stop opening new fossil fuel projects.

Energy Minister Chris Bowen has ruled out meeting this demand, telling ABC Radio National on Thursday: “We won’t be doing that.

“The Greens have different views and that’s fine.”

The safeguard mechanism forms part of the climate commitments Prime Minister Anthony Albanese took to the federal election. Picture: NCA NewsWire / Gary Ramage

Mr Bowen said he would continue to negotiate with the Greens, but he called the minor party’s bluff, saying he didn’t think they’d actually vote against the Bill.

“I would be astounded if the Senate, with the numbers that it has, with the combination of progressive forces that it has, would say no to … the only chance for big emissions reduction from our big industrial emitters,” he said.

“I don’t believe it’ll get to that.”

Mr Bowen insisted the safeguard was a “meaty” and “practical” policy that would reduce emissions across nearly a third of the economy by 205 million tonnes.

Greens leader Adam Bandt told the same program earlier the Greens had put on the table “an offer, not an ultimatum”.

But he said while his party was prepared to compromise on some parts of the scheme, it wanted the government to agree to stop new fossil fuel exploration.

“Stop making the problem worse, stop opening new coal and gas projects. It’s a pretty straightforward proposition,” he said.

Labor, big business and unions have all attacked the Greens over their position on the safeguard mechanism, saying the progressive party was reigniting the so-called climate wars of 2009.

Then-Greens leader Bob Brown rejected Kevin Rudd’s carbon pollution reduction scheme and the country was left without a functioning climate policy for more than a decade.

Chris Bowen says he will continue to negotiate with the Greens. Picture: NCA NewsWire / Gary Ramage

Environment Minister Tanya Plibersek said she thought Greens voters in the community would be shocked to see the party “walking over to sit next to Peter Dutton and Barnaby Joyce” by siding with the Coalition to vote against the safeguard mechanism.

“It will take the Greens right back to when they voted with the Liberals to block the carbon pollution reduction scheme under the previous Labor government,” she told Sky News on Thursday.

Asked whether she was fully committed to new coal and gas projects, Ms Plibersek said she would judge every project “on its merits” and was “prepared no say no”.

“We’ve got a mechanism for bringing down carbon pollution. It is ready for the Greens to vote for now. If they don’t vote for this, all they will do is ensure that we have more emissions for longer.”

The safeguard mechanism is just one of three of the government’s signature policies that the Greens and Labor are locking horns over.

The Albanese government is also racing to win support for its $10bn Housing Australia Future Fund and the $15bn National Reconstruction Fund before the May budget.

The Coalition has ruled out supporting any of these policies, meaning the government will need the Greens and two crossbench senators to pass the required legislation in the upper house, where it doesn’t hold a majority.