The federal government could have support for its signature emissions reduction proposal if it agrees to stop opening new coal and gas projects.
The Greens have revealed the position will underpin their support to pass Labor's changes to the safeguard mechanism, which is a key part of its climate change policy and aims to cap the emissions of Australia's 215 biggest-polluting companies.
Those breaching the limit would be forced to buy carbon offset credits or trade their emissions with other companies.
Greens leader Adam Bandt said despite the minor party having concerns about many elements of the scheme, it would back it if the government agreed to one amendment to stop opening new coal and gas projects.
"If Labor's scheme falls over, it will be because Labor wants to open new coal and gas mines," he said.
"Labor has to decide how much it wants new coal and gas mines."
Mr Bandt argued the government's current plan would make the climate crisis worse and insisted its refusal to stop new carbon-emitting projects from opening was a sticking point.
"You can't put the fire out while pouring petrol on it. The first step to fixing a problem is to stop making the problem worse," he said.
The government requires the support of the Greens plus two crossbenchers to pass the proposal through the Senate.
Independent senator David Pocock on Monday indicated he was concerned about the scheme and is expected to push for further integrity measures within the safeguard mechanism.
Resources Minister Madeleine King said the industry would underpin Australia's economy for many years to come.
"The truth of the matter is, for a number of years we will still need to use some fossil fuels," she told parliament on Tuesday.
"We want to increase activity in renewables, we have a commitment to net zero emissions by 2050 ... (but) we will need to keep using products such as gas."
