Negotiations are taking place in Canberra for a compromise in which companies could be credited for beating emissions baselines and risk financial penalties for exceeding them
A grand bargain aimed at winning parliamentary passage of the governments Direct Action climate change plan and a revamped renewable energy target is being quietly discussed behind the scenes in Canberra.
Independent senator Nick Xenophon supports one version of the idea, the Palmer United Party is understood to be considering it and environment minister Greg Hunt is listening, but has as yet made no commitments.