Greens strike deal on Labor climate safeguard policy

Labor will get its signature climate policy through parliament after an agreement was struck with the Greens.

* A ceiling on actual or absolute (gross) emissions, which won't be able to exceed current pollution levels of 140 million tonnes a year, and there will be a decreasing cap over time.

* A pollution trigger will require the climate change minister to test a new or expanded project's impact on the hard cap and net carbon budgets. If the assessment finds the project would contribute to exceeding the cap or budget, the minister must consult and recalibrate the rules or impose conditions on new entrants.

* All scope one emissions from the Beetaloo gas project will have to be net zero with scope two and three emissions referred to the Ministerial Energy Council, presenting a significant financial barrier to the Northern Territory project proceeding.

* All new gas fields for LNG export will need to be net zero CO2 from day one.

* Incentives for onsite abatement to actually cut pollution.

* Corporations will be required to justify their use of offsets if they use offsets for more than 30 per cent of their baseline. A review in 2026/27 will look at the use of offsets.

* The Powering the Regions fund will not be used to fund coal or gas projects. The government will provide $400 million for industries such as steelmaking, cement and aluminium to help decarbonise.

* Increased methane monitoring, leading to greater coal and gas emissions reductions.

* The laws will require reporting of all types of gases and offset generation use creating greater transparency and pressure on corporations to do more.

Australian Associated Press