Federal Labor warns Tony Abbott on the warpath might sink the Turnbull government's proposed national energy guarantee policy.
Prime Minister Malcolm Turnbull is reportedly facing a backlash in government ranks from conservative MPs including the man he replaced in the top job, over his energy policy.
Mr Abbott has declared he doesn't support plans for overseas carbon credits being made available to Australian businesses, describing it as a carbon tax under a different name.
Acting opposition leader Tanya Plibersek said it's only three days into the new year and the Liberal Party was at war with itself over climate change action.
"Who knows what the future of the national energy guarantee is If Tony Abbott is on the warpath again?" she told reporters.
"There's one thing you can guarantee for sure is Malcolm Turnbull going underwater," she told reporters in Sydney.
The national energy guarantee would involve energy retailers delivering a set level of ready-to-use power in each state to shore up reliability, while also being compelled to meet a lower emissions target.
Ms Plibersek said major business and industry groups support reducing carbon pollution by trading in well-regulated markets.