The Greens have signalled they're willing to compromise to pass the government's safeguard mechanism, which would lower the emissions cap for big polluters.
Leader Adam Bandt says he wants no new coal and gas projects in exchange for the minor party's support to pass the laws in the Senate, arguing any gains made by the cap would be wiped out by new fossil fuel projects.
But Mr Bandt says the proposition is an offer, not an ultimatum.
"We've said look, there's some significant problems with the scheme ... we'll put those aside and give it a go," he told Sky News' AM Agenda on Sunday.
"Here's our offer, just stop making things worse by opening new coal and gas."
Mr Bandt floated legislating a climate trigger, where the environmental impact will have to be taken into account when assessing new projects.
"That's a solution. That's a suggestion that's worth having a look at," he said.
He also denied the Greens were being obstructionist, saying he understood Australia was going through an energy transition towards renewables and his argument only stood against new coal and gas projects.
"We're not talking about existing projects. There's enough in the system at the moment for us to go through the transition," he said.
"It just says don't make the problem worse."
The Greens also want to block the government's signature $15 billion manufacturing fund from propping up fossil fuel projects.
Industry Minister Ed Husic said the government is involved in constructive discussions with both the Greens and cross bench about the reconstruction fund legislation.
"The Albanese government's $15 billion national reconstruction fund is one of the largest investments in manufacturing capability in living memory," he told Sky News.
"It's going to ensure we reduce our dependence on broken or concentrated supply chains and take the fight to inflation.
"The safeguards are also a big part of us being able to reduce emissions and increase jobs in the process as well."
