Palmer still wants ETS

Clive Palmer is standing by his demand that the government create a dormant emissions trading scheme.

Federal MP Clive Palmer

(AAP)

Clive Palmer maintains his senators will only vote for the government's Direct Action climate change plan if it commits to his idea for an emissions trading scheme.

The coalition's $2.55 billion emissions reduction fund, designed to replace Labor's axed carbon pricing scheme, is being held up in the Senate pending talks with the Palmer United Party.

To pass its legislation, the government needs the support of PUP's three senators plus three other crossbenchers.

But Mr Palmer says the government will only get PUP votes if it implements an emissions trading scheme designed to kick in when Australia's main trading partners institute similar schemes.

Mr Palmer says he wants more than lip service from the government.

He wants a "meaningful commitment".

"An ETS is what's required," Mr Palmer told ABC radio on Tuesday.

"We're still waiting final confirmation from the government of what they will do. It rests with the government, not us."

PUP is also considering amendments being proposed by independent senator Nick Xenophon, some of which it has rejected.

The Greens have also been talking to the government about the climate plan. But their negotiating position includes retaining the renewable energy target in full.


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