The proposed plan would impose a carbon price on polluters of $20 a tonne from July 1.

Climate Change Minister Penny Wong said the government was prepared to discuss the proposal with the Greens further, but the introduction of a $10bn-plus annual tax in an election year would appear to be a political impossibility.

“We propose to move immediately with an interim low carbon price. We can then discuss the longer-term solutions Australia will need over the coming two years, secure in the knowledge that a carbon price is already in place, helping to unleash innovative and job-creating climate solutions,” Christine Milne, Greens climate change spokeswoman, told The Australian.

Greens say their proposal would raise $21bn in revenue over two years. Half of this would be handed back as assistance to low- and middle-income families, while $2.5bn would be allocated for fighting climate change in developing countries.