Environment and Energy Minister Josh Frydenberg has hit the phones to the Coalition backbench to calm growing concerns about the federal government's climate change review, and to stress the need for Australia to remain in the Paris agreement.
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The calls were made after Fairfax Media last week revealed at least five government MPs wanted a possible re-think of Australia's commitment to the deal to reduce carbon emissions, after US President Donald Trump announced his country would quit the deal.
The move by Mr Frydenberg, who is allied with the conservative wing of the Coalition and who has been charged with overseeing reviews of the electricity sector and climate policy, underscores growing concern at the highest levels of the Turnbull government about new fissures opening up over the contentious policy area.
Malcolm Turnbull lost his job as opposition leader back in 2009 after a rebellion over climate policy led by Tony Abbott and the Prime Minister is keenly aware of just how sensitive climate policy remains inside the Coalition.
Fairfax Media understands that at least six MPs in the Liberal party's conservative wing - Eric Abetz, Andrew Hastie, Tony Pasin, Craig Kelly, Ian MacDonald and junior minister Angus Taylor - have been called by Mr Frydenberg over climate policy and the Finkel review.
In those calls, Mr Frydenberg has stressed the need for the government to remain unified over climate policy. This reminder has been understood in the context of the 2009 implosion.
He has also argued the importance of sending a market-based signal, through climate policy settings, to the electricity market to spur new investment.
Crucially, the minister also promised that keeping downward pressure on electricity prices for households and business remains a top priority for him, and for the government, as new policies are developed.
One MP borrowed a line from P.G. Wodehouse and said that on climate policy, conservative MPs "if not actually disgruntled, [are] far from being gruntled".
"Josh has an acute antenna, particularly for people in the conservative wing. He knows he has to carry the moderates and the conservatives with him on this policy."
Another MP said that Mr Turnbull was "playing with fire" on climate policy.
"Two of the policy principles on which he compromised to buy the leadership were swallowing his pride on Direct Action, and on the plebiscite for same-sex marriage plebiscite. If he goes back on either, this would cause major concerns in the party room."
The MPs contacted by Mr Frydenberg praised his efforts to keep them in the tent but added that they were watching to see whether so-called clean coal, for example, would be allowed under the low emissions target (LET).
Chief scientist Alan Finkel's review of the electricity sector is due to be released at the Council of Australian Governments meeting in Hobart on Friday and will inform a climate policy review due by end of the year.
The review is expected to recommend a new LET, in line with a recommendation in a Climate Change Authority report, as a second-best policy option because the federal government has ruled out an Emissions Intensity Scheme (EIS), which is a form of carbon pricing.
A LET operates in a similar way to the Renewable Energy Target and would require more electricity be supplied from –depending on its design – renewables, carbon capture and storage coal fire power and highly efficient gas plants.
Deputy prime minister Barnaby Joyce, a climate change sceptic, has indicated he believed the LET could be the way forward to allow the development of next generation coal-fired power stations as well as renewable energy.
Business Council chief executive Jennifer Westacott said it was abundantly clear that "doing nothing" doesn't work.
"A properly constructed LET, designed in consultation with industry and customers, could be an effective solution to deliver secure, reliable and affordable electricity while also assisting us to meet our emission reduction targets," she said.
The progressive Australia Institute's executive director, Ben Oquist, said: "A well-designed low emissions target could be the basis for the needed integration of climate and energy policy in Australia".
