The states and territories could take issue with the federal government's National Energy Guarantee with a key paper suggesting Canberra is considering a set national carbon emissions target.
The 12-page Commonwealth Design Elements paper, obtained by Fairfax Media, recommends exemptions for large polluters but doesn't take into account efforts by states and territories to curb their emissions.
In addition, the targets will be reviewed only once in five years, Fairfax reported the paper as saying on Monday.
"Where states and territories pursued their own renewable energy targets, such as to achieve investment or policy objectives, this would not change the target under the [National Energy] Guarantee," the paper states.
The issue looms large as Manufacturing Australia, which groups 10 large energy users, urged ministers to back the NEG, which is meant to reduce power prices, beef up reliability and cut carbon emissions.
The federal government hopes to sell the energy ministers on the NEG when they meet in Canberra on Friday.
