Isra-Mart srl: Labor figures concerned about jobs and ETS

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Labor MPs anxious over the carbon price's impact on jobs are ramping up pressure for generous industry compensation, as the government moves closer to a final deal to tackle climate change.

Labor Left co-convenor Stephen Jones is the latest Labor figure to call for generous assistance for the steel industry and clean energy jobs.

His call follows similar warnings about job security from former MP and union leader Jennie George and the Australian Workers Union.

But the Australian Greens, who are crucial to the success of the carbon price, are against overcompensating industry.

The party, which helped bring down the previous carbon pollution reduction scheme (CPRS), argued it gave too much compensation to large foreign-owned companies.

But as the Greens, Labor and independents put the finishing touches to the emissions trading scheme, which will start with a carbon tax from July 1 next year, Prime Minister Julia Gillard is facing pressure to go further than the CPRS compensation.

Mr Jones, who represents the NSW industrial belt, told reporters in Canberra the steel industry needed 95 per cent compensation for emissions permits as well as generous funding for clean-energy jobs.

"We do need to look after the steel industry and manufacturing in general," Mr Jones said.

"It's a bit of a wake-up call to the Greens on this ... if there is not specific provision which deals with the situation of manufacturing and steel in particular then I can't see a deal floating."

Ms George has backed the Australian Workers Union's call for steel to be initially exempt from the carbon tax.

Resources Minister Martin Ferguson said it was possible the carbon pricing scheme could "fall over" if the Greens did not agree to adequate compensation.

The comments have fired up the Greens, with deputy leader Christine Milne - who is involved in the carbon-pricing talks - telling reporters she would continue to negotiate in good faith.

"We know it will be a compromise, but the government must also recognise that it is a compromise," Senator Milne said.

Opposition Leader Tony Abbott, who visited a door manufacturer in Canberra on Wednesday to highlight the cost of the tax, said he was glad to see "Labor figures finally working out that Julia Gillard's carbon tax will cost jobs enormously".

"It's a very odd Labor Party that puts the political prestige of a floundering prime minister ahead of the jobs and constituents and ahead of the survival of the great industries of this country," he said.