The Federal Government must categorically reject Greens proposals to block new gas and coal projects as the price of passing emissions safeguards legislation, the Australian Chamber of Commerce and Industry warns.

Greens leader Adam Bandt has indicated the party will help Labor pass the scheme if it agreed to an amendment to stop opening new coal and gas projects.

Climate Change Minister Chris Bowen told reporters the government wanted to work with the cross bench in good faith. The Greens would ultimately have to decide if they wanted to vote for or against 200 million tonnes of emissions reduction, he said.

ACCI chief executive Andrew McKellar said this was not the time for another climate war.

“Business urges the government to hold firm and reject this ideological wrecking ball,” Mr McKellar said.

Choking off energy supply before alternative sources were available would drive up electricity prices and cause blackouts, the ACCI stated.

It would also cause a major economic penalty while impairing the ability of other countries to transition to a low emissions economy.

“Extremists won’t be satisfied until the lights go out for good. The government must stay the course and deliver the best possible outcome for Australia’s future,” Mr McKellar said.

“There is a pipeline of investment ready to deliver the next generation of energy production in Australia and the Greens are putting this at risk.”

The ACCI argues that the safeguard mechanism legislation provides a pathway for industry to decarbonise and move towards Australia’s international obligations.

Mr McKellar said only a bipartisan approach to energy policy would move the nation towards a net-zero future.

“No-one has proposed any other way to achieve emissions reductions goals in an efficient way. For the sake of certainty, and to meet emissions reduction goals, the safeguard mechanism must pass,” Mr McKellar said.