Greens Leader Adam Bandt on Tuesday warned the federal government that the interests of Australians won't be traded off for more fossil fuels under a proposed industrial emissions reduction mechanism.

"We're putting everyone on notice," he told the AFR Energy and Climate Summit.

"Cut coal and gas loose. They are the new asbestos and tobacco," he said.

"The Greens are ready for a fight to stop new coal and gas."

Labor needs the support of the Greens to pass its proposed changes to the so-called safeguard mechanism that is a centrepiece of Labor's climate policy, along with a commitment to cut emissions by 43 per cent by 2030.

The proposed laws, designed to encourage the biggest emitters to reduce pollution, will be introduced to parliament next month, with Climate Change and Energy Minister Chris Bowen aiming for them to take effect from July 1 next year.

Across the economy, more than 200 industrial facilities each producing more than 100,000 tonnes of emissions a year must comply with the current safeguard mechanism scheme, to be tweaked under a tight timetable.

Mr Bandt said the Greens have launched their own consultations with industry to garner support to ensure carbon credits are not given to the fossil fuel industry for over-delivering on pollution caps that are already too weak.

He said oil, coal and gas facilities should not be able to buy permits to trade off their emissions.

"You can't offset your way out of the climate crisis," he said.

"The Greens alone have the sole power to set the scheme up for the future or send it back to the drawing board," he said.

He said the Greens are "open" to supporting a safeguard mechanism that treats genuine Australian industry differently to coal and gas.

"The question will be whether it in fact works to cut pollution," he said.

Mr Bandt said the scheme masquerades as a plan that is primarily about genuine industry, but is actually dominated by coal, oil and gas.

"This is a critical point to understand - 57 per cent of emissions covered by the safeguard comes from coal, oil and gas facilities," he said.

He said steel, iron and aluminium manufacturing, glass and brickworks, recycling and waste disposal, transport - airlines, trucks and other vehicles - agriculture, food and fibre have a green future.

"Coal and gas do not," he said.

Australian Associated Press