The Albanese government says it had to shelve its offshore gas regulation bill due to the Greens' strong opposition.

Following the Greens' threat to derail Labor’s vehicle emissions reduction policy, the bill to grant the Resources Minister enhanced powers for environmental and regulatory decisions has been deferred. 

The resistance stemmed from the Greens but also ignited debates among Labor backbenchers and sparked criticism from environmental and First Nations groups.

Coalition resources spokeswoman Susan McDonald expressed dismay over the delay, accusing Labor of compromising Australia's energy future. 

“Despite finally securing bipartisan support for offshore gas reform that the Coalition has been demanding for 18 months, Labor has slapped away the hand of bipartisanship at the last minute,” McDonald said, accusing the government of capitulating to activist pressures.

Greens leader Adam Bandt framed the gas bill as a major roadblock to cooperative climate action. 

“Labor has to choose its dancing partner on climate change,” Bandt said, highlighting the ideological divide on environmental policies.