Greens open to backing Labor’s 43pc emission target

When pushed on whether the Greens would demand Labor take steps to ban new coal and gas projects, Mr Bandt said the two issues were “linked”.

“This is the key issue. We’re doing this because we want to cut Australia’s pollution; that is why we’re having these discussions. Now, you don’t put the fire out while you’re pouring petrol on it,” he said.

“I think it’s a fixable problem. And this is where it comes into how we want to approach this. We’re saying to the government, we would enter into discussions without preconditions.”

The government would need the support of either the Coalition or the Greens to pass the target through the Senate.

Treasurer Jim Chalmers on Sunday said neither the Coalition nor the Greens had learnt a single thing from a wasted decade of missed opportunity on cleaner and cheaper energy.

“If they think we should be doing something about climate change in a responsible way, then all parties in the parliament should vote for it,” Dr Chalmers said.

Mr Bandt’s comments come after Chinese Premier Li Keqiang was quoted by the Xinhua news agency last week telling economists China needed to stabilise foreign trade and energy prices to get its economy back on track, and calling for improved supply of coal-fired electricity and the unclogging of supply chains.

Reports later emerged that the world’s second-largest economy and its largest emitter of pollution was considering overturning its ban on Australian coal imports to boost supplies and avoid power disruptions.

Dr Chalmers said that would be a welcome development, but it should not stop there.

“It should extend to the restrictions that are placed on some of our other exports as well, in the interests of our employers and our exporters,” he said.

Resources Minister Madeleine King told The Australian Financial Review that news the ban would be lifted was still just rumour, but even if true, there was now a question of “dependability” when it came to China.

“Obviously, it makes sense to have a diversity of customers,” Ms King said, and coal suppliers would make “sensible choices off the back of their experience” with China’s “unreasonable” block on Australian coal.

China was a major market for Australian coking coal, but was overtaken by India in the years before the China ban. India looms as the major growth market for the commodity in the years ahead.

The China ban forced miners to work harder to win customers in India and Europe, and supply shortages sent coking coal prices to record highs last year, long before prices were further turbocharged by war in Ukraine.

Prices for top-quality Australian hard coking coal slumped by 37 per cent in the 25 days to Friday amid extremely weak demand for steel as high energy prices and fears of a recession crimped demand.

Price provider Platts noted at the weekend that coking coal prices were now in contango – a situation where futures prices were higher than current prices.

“Some market participants attributed the price structure to the possibility that demand for Australian materials could improve if China decides to lift its unofficial ban on Australian coals, although this was yet to play out in the physical market,” Platts said in a note to clients on Saturday.