Australia’s past decade of political climate wars had created significant uncertainty for the business community and setting a legislated target sent an important signal to investors, who will be needed to deliver hundreds of billions of dollars in private capital needed to transition Australia to a clean economy.

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“Investors have been burned before. They’re human and you stick your hand in the fire and you don’t stick it in again. It would certainly help investor confidence to have the Coalition, along with all other parliamentarians, supporting a robust and strong outcome for the country,” Jackson said.

Australian Council of Superannuation Investors chief executive Louise Davidson said climate change is the most significant challenge for business and legislating Labor’s emissions reduction target would “support the delivery of deeper emissions cuts” and help achieve the Paris Agreement goal of limiting global warming to as close to 1.5 degrees as possible.

Australia Conservation Foundation climate campaigner Gavan McFadzean said legislating Labor’s bill would be a “critical step forward for Australia” that would enable more emissions reduction into the future “in line with what the science says is needed”.

Australian Industry Group chief executive Innes Willox said bipartisan support was crucial.

“The broader the base of political consensus around this bill, the easier the case for the major clean economy investments Australia needs in manufacturing, energy, resources and more,” he said.

The Greens are shaping up to back Labor’s bill, after the wording was amended to make explicit the 43 per cent target was a floor not a ceiling on emissions reduction. That’s despite Labor’s refusal to raise the target to 75 per cent for 2030 or budge on the minor party’s key policy from the May election demanding an end to coal and gas exports.

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The Greens’ climate trigger bill seeks to have the emissions of future developments, including fossil fuel projects assessed as part of the approval process.

“Putting a ‘Climate Trigger’ in law will force corporations to be honest about how much pollution their new projects and mines will create, and force the minister to consider the climate impacts before giving any environmental approval,” Greens senator Sarah Hanson-Young said.

“Current environment laws are not fit for purpose. It makes no sense that an application for a new mine or development is not assessed for the impact the project’s emissions will have on the climate.

Cut through the noise of federal politics with news, views and expert analysis from Jacqueline Maley. Subscribers can sign up to our weekly Inside Politics newsletter here.