Carbon tariff on the table for overseas businesses

Energy Minister Chris Bowen said Australia remained on-track to meet its legislated 43 per cent by 2030 emissions reduction target but that the nation needed to do more to achieve it.

Asked if a carbon tariff - a tax charged on imports - was still a prospect, Mr Bowen flagged particular sectors were being considered.

But consultation with Australian industry was still underway, he added.

"I've had lots of meetings with steel makers and cement makers about these things over the past 12 months ... getting their feedback, and we'll have more to say during the course of this term," he told the ABC on Sunday.

Mr Bowen said gas giant Woodside will be required to ensure the North West Shelf project meets net-zero emissions by 2050.

Woodside hosts Australia's biggest gas export plant, and last week was given approval by the Albanese government to keep operating until 2070.

The move has been slammed by environmental groups.

"In effect, all the facilities covered, the more than 200 facilities covered by the safeguard mechanism are obliged to have a pathway to net-zero," the minister said.

The mechanism is a policy designed to limit emissions at Australia's largest industrial facilities in line with the nation's climate targets.

Religious leaders in Western Australia have expressed their disappointment at the 40-year expansion given to the energy giant.

Reverend Ken Devereux, from the Australian Religious Response to Climate Change, said the next test for the government was to make sure the Browse project does not go ahead.

Woodside has been trying to get environmental approvals for the $30 billion Browse gas project off the Kimberley coast since 2018.

"We believe that moral and ethical choices for the greater good for humanity and creation need to take precedence over the benefits to fossil fuel corporations and the short-term economy," Rev Devereux said.

Asked if approving gas projects would make it harder for Australia to win a global climate summit it is bidding to co-host with Pacific Island nations next year, Mr Bowen said these decisions would always be controversial.

"I don't deny that, but we'll always set Australia's domestic policy in Australia's domestic best interest," he said.

"There's a great opportunity for our country, (it) restores Australia's leadership in climate against the bad years of the decade of denial and delay, (and) shows we're back in a very meaningful way".

Turkey is also bidding for the climate talks, with the energy minister hopeful the issue is resolved soon.

Mr Bowen said Australia remains on track to reduce emissions by 43 per cent by 2030, despite a small increase in emissions last year.

He also ruled out a retrospective domestic gas reservation policy to existing fields.

Australian Associated Press