Labor and Greens could agree to compromise on non-fossil fuel industries in safeguard mechanism

Greens in internal negotiations over backing down on demand for ban on new coal and gas projects in Labor's climate policy

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Labor could agree to treat existing non-fossil fuel industries - such as cement, aluminium and steel - differently to new coal and gas developments in a bid to reach agreement with the Greens on a signature climate policy.

But it is unclear whether the possible compromise on the design of the safeguard mechanism would be enough to win support for the Albanese government's plan, which requires major industrial polluting sites to reduce emissions intensity onsite cuts or buy carbon offsets.