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AAP
AAP
Politics
Paul Osborne

Labor to axe coal from green bank remit

Energy Minister Angus Taylor says ruling out technologies is the wrong thing to do. (AAP)

Labor will again seek to remove the ability of Australia's green bank to invest in fossil fuel technology.

The federal government has redrafted rules to expand the remit of the Australian Renewable Energy Agency after its first attempt was quashed by Labor and the Greens.

The regulations allow ARENA to invest in low emissions technologies including carbon capture and storage and hydrogen made with the use of fossil-fuel generated energy.

Ahead of parliament sitting on Tuesday, the Labor caucus on Monday decided it would move another disallowance motion.

However, the motion would be more tightly worded than the previous, only dealing with the regulations' section on carbon capture and storage and hydrogen made using fossil fuels.

Pro-coal Labor MP Joel Fitzgibbon argues his colleagues should support the government's position.

Labor will need cross bench support to be successful in the Senate.

The Greens also plan their own version of the disallowance motion, which goes further than Labor's.

"Angus Taylor's crusade to spend more public dollars on coal and gas is as shambolic as it is reckless," Greens leader Adam Bandt said.

It is unclear when the motions will be moved.

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