The prime minister has laid down a challenge to the Greens to back the government's multi-billion dollar manufacturing strategy, as negotiations on the proposal continue.
As Labor looks to pass its Future Made in Australia strategy through the lower house, Greens leader Adam Bandt said the party would only lend support if the government agrees to not fund coal and gas projects.
Under the manufacturing strategy, the government wants to spend more than $22 billion over the next decade in areas such as renewable energy and critical materials to safeguard the nation's resources.
With the coalition indicating its opposition to the plan, the government needs the support off the Greens to get Future Made in Australia through parliament.
But Prime Minister Anthony Albanese urged the Greens leader to support the proposal, saying it would support jobs in the renewables sector.
"We're quite happy for him to get on board and indeed for the Coalition to get on board as well, making more things here, because we need a more resilient economy as we take advantage of the shift in the global economy," he told parliament on Wednesday.
"(Mr Bandt) should support the Future Made in Australia plan. He should support Australian jobs. He should support Australian manufacturing, and we'll wait and see."
Mr Bandt said the party would abstain from voting on the proposal in the lower house, subject to negotiations with the government on the issue, but insisted it would carry out talks in good faith
"A future made in Australia can't be a future for more coal and gas," Mr Bandt said.
"By expanding coal and gas past 2050, Labor will suck investment and labour away from critical minerals, green steel and green hydrogen."
The Greens have included calls to redirect $1.5 billion in government support for the Middle Arm gas project in the Northern Territory towards clean energy initiatives.
A Greens-led Senate inquiry report into the Middle Arm project was released on Wednesday concluded it put ecosystems in the region at risk.
Inquiry chair, Greens senator Sarah Hanson-Young, said the project would harm human health.
"We simply can not proceed with massive new gas and fossil fuel projects subsidised by taxpayers," she said.
"Darwin needs clean air and clean water. The Middle Arm scheme would wreck the beautiful Darwin harbour and ignore community voices."
The inquiry had recommended the Future Made in Australia scheme be banned from subsidising fossil fuel industries.
