Turnbull 'doomed' if ETS deal fails

While a large number of Liberal Party MPs remain opposed to an ETS, Climate Change Minister Penny Wong and the coalition's chief negotiator Ian Macfarlane are still thrashing out a deal.

Australian Greens deputy leader Christine Milne says the federal government is positioning itself for a political rather than an environmental outcome.

"If they get it through, they get the political outcome that they want... and they split the coalition," Senator Milne told reporters in Canberra on Friday.

"If they don't get it through, then they blame the coalition and Malcolm Turnbull is damaged, in my view irretrievably, by having lost complete control of his party."

Earlier, Senator Wong declined to rule out giving more compensation to the coal and electricity sectors.

In response, Senator Milne said the minister was prompting a scheme that would reward the polluters and do nothing to mitigate catastrophic climate damage.

"The coalition have obviously agreed to go with the weak targets and now they're negotiating about additional compensation but don't let anyone think that the minister can hold her head up and say straight to camera that this is an environmentally-effective or economically efficient scheme."