Environment groups are demanding the Turnbull government heed the recommendations of a Labor-Greens dominated parliamentary committee that's called for the orderly closure of coal fired-power stations.
The committee, chaired by Greens senator Larissa Waters, recommends the government put a plan to state ministers for closing down coal-fired power stations and transitioning to renewable energy, including reforming National Electricity Market rules.
It wants a new government body set up to oversee the transition and help workers and communities plan for the changes.
There are 23 coal-fired power stations still operating in Australia, ranging in age from six to 45 years.
"The question is not if coal-fired power stations will close, but how quickly and orderly these closures will occur, and what supporting policies, if any, will be in place to help manage the process," Senator Waters writes in the committee's report.
"It is imperative that this reality is acknowledged by government, industry and the broader community."
The two government senators on the six-person committee disagreed with the recommendations.
Climate campaigners 350.org said it was the first time a parliamentary body had called for replacing coal-fired power stations with renewables.
"This historic report must be a wake-up call that the government's lack of coherent climate policy is leading to chaos in the energy sector and in communities," campaigns director Charlie Wood said.
The Australian Conservation Foundation says the report adds to a growing chorus of energy companies and industry bodies that want a planned switch away from coal.
Coalition senators David Bushby and Jonathan Duniam, in a dissenting report, said that nine of the 12 most emissions-intensive coal-fired power stations would have closed by April 2017 without any government intervention.
They noted expert evidence to the committee, including from the Australian Energy Market Commission, that government interference would likely lead to increased costs with no environmental benefit.
