Palmer offers govt Direct Action hope

The federal government could have a deal on its Direct Action climate policy as early as Wednesday.

The coalition's $2.55 billion emissions reduction fund, which will replace Labor's carbon pricing scheme, is being held up in the Senate pending talks between the Palmer United Party and the government.

To pass its legislation, the government needs the support of PUP's three senators plus three other crossbenchers.

PUP leader Clive Palmer told reporters in Canberra on Monday he was still talking to the government about his party's support but progress was being made.

"I'd love to tell you about it but I've got to save it for another day, probably on Wednesday," Mr Palmer said.

Mr Palmer earlier this year joined with former US Vice-President Al Gore to announce that he would support the abolition of the carbon tax.

But he wanted the government to implement an emissions trading scheme when Australia's trading partners instituted similar schemes.

The party still wanted an ETS but was calling on the government to commission a study into emissions trading and the impact on trade and investment if Australia did not follow other countries in putting a scheme in place.

"Putting environmental considerations aside, if you have an ETS operating in China, Japan, Korea, the US and Europe our products won't get entry because there will be a tariff - we will have to pay their ETS to get entry," he said.

PUP is also considering amendments being proposed by independent senator Nick Xenophon, some of which it has rejected.

The Greens have also been talking to the government about the climate plan. But their negotiating position includes retaining the renewable energy target in full.