Clean coal projects such as those proposed by the Turnbull government are expected to be endorsed by G20 leaders this week.
There has been much debate in the lead-up to the Hamburg summit, which starts on Friday, surrounding the final wording of the leaders' communique when it comes to tackling climate change.
US President Donald Trump had announced his nation would pull out of the Paris climate pact and renegotiate terms, deeming it unfair and job-destroying.
He is vastly at odds with host leader German Chancellor Angela Merkel, who wants a bold and ambitious statement on climate as well as a reaffirmation of the Paris targets.
It is understood a working draft of the communique includes a climate action plan with room for clean coal if G20 members so desire.
The text refers to "clean technologies such as energy efficiency, renewable energy, natural gas and nuclear power, for those countries that opt to use it, and advanced and cleaner fossil fuel technologies", the respected Climate Home website has reported.
This could include carbon capture and storage as well as gasified coal.
Germany's earlier calls for a deadline to set deadlines to end fossil fuel subsidies and reach zero global emissions have been deleted from the most recent communique draft, which will sit well with the US, Russia and Saudi Arabia.
The final leaders communique will be released on Saturday.
Prime Minister Malcolm Turnbull, who will arrive in Hamburg on Thursday afternoon, has flagged possible government support for a clean coal power station if the technology and cost proved viable.
He wants Australia's climate policy to be technologically neutral, and efficiently priced as well as cutting emissions to meet the nation's Paris commitments.
