Adam Bandt, David Pocock want safeguard mechanism to go further as Jacqui Lambie hits out

The federal government is facing a political fight to get its contentious climate change policy through, as the crossbench is firing up.

Pressure is mounting on the federal government to close loopholes that threaten to exacerbate the climate crisis – or risk their climate change policy failing.

The contentious safeguard mechanism is one of four key pieces of legislation the government wants passed through the Senate this fortnight, but it will be a fight to do so, as Labor needs to shore up the support of the Greens and independent senators.

The reforms would legislate an emissions reduction target for the country’s 215 largest emitters.

However, the Greens are concerned about the provision that allows new fossil fuel projects to begin, while independent senator Jacqui Lambie say the minor party’s desire for the perfect policy risks toppling the whole Bill.

And, while the Greens say they’re not asking for the Bill to be perfect, only the bare minimum, independent senator David Pocock has used the overnight release of a dire Intergovernmental Panel on Climate Change report to warn there is no time to waste.

Greens leader Adam Bandt wants the government to agree to no new coal and gas. Picture: NCA NewsWire / Gary Ramage

Greens leader Adam Bandt said Labor was giving the United Nations the “middle finger” by pressing on with opening new coal and gas mines despite the clear warning it could lead to a climate collapse.

“If Labor proceeds to open new coal and gas mines in the face of this very clear, final warning from the world’s scientists and the United Nations, they will be condemning our children to an unbelievable future,” he said on Tuesday morning.

Senator Lambie has criticised the Greens, conceding that while the reforms are not perfect, they are a “perfect opportunity” for a starting point.

“This is your starting point – and you keep working on it, on decreasing those emissions, keep putting up Bills, keep doing deals with the Labor government and keep reducing it that way,” she told ABC Radio.

“If you don’t have a starting point here – we haven’t got the magic starter – we’re not going anywhere. We don’t even have a starting point and I think that’s really, really disappointing.

“I’m worried that it’s gonna fall over and it’ll be the Greens’ fault. You need a starting point, this is your opportunity to get a starting point so we can keep working on reducing those emissions.”

Independent senator Jacqui Lambie says the Greens are asking for too much, and the reforms as they are a good starting point. Picture: NCA NewsWire / Gary Ramage

The government has maintained that gas will be a major tool in transitioning the economy to a decarbonised one; however, independents, including Senator Pocock, say there’s already enough gas in the system.

One of his major concerns is the provision that allows the 215 biggest emitters to trade carbon credits if they fail to meet their quota.

He said Australia would join only one other country – Kazakhstan – in allowing such an action.

“We’re essentially allowing our industrial sector to offset their emissions in the land sector,” he told ABC Radio.

“No other country does that apart from Kazakhstan for very good reason – you want to incentivise actual reductions in emissions rather than allowing fossil fuel companies to use offsets and simply pay to pollute. That’s something I’d really like to see addressed.”

Carbon Market Institute chair Kerry Schott told the National Press Club on Tuesday that the safeguard mechanism “isn’t going to fix everything”, but the “relatively slender Bill” would be effective.

“It just simply introduces the safeguard mechanism and credits, mechanisms that are already there, but not without any credits for doing better than an emissions intensity target and no real ability to trade and nothing to encourage people who are below it to get cracking,” she said.

“It is very important that this relatively slender Bill gets through.

“Carbon markets are really important, they have an important role to play in the transition, and they will continue to have an important role to play for those hard-to-abate emissions in the future.”

David Pocock is concerned about the carbon credits scheme. Picture: NCA NewsWire / Gary Ramage

Climate Change Minister Chris Bowen said the government’s proposal was an “opportunity” to bring down emissions.

Mr Bowen says it would have the same impact as taking two-thirds of the country’s cars off the road.

“Ten years of denial and delay has increased the threat of climate change to our health, environment, economy and national security. The government is acting rapidly to urgently turn this around,” Mr Bowen said.

“If passed, our reforms will come into effect in just 101 days from now.”