The Australian Greens have accused Resources Minister Martin Ferguson of having his head stuck in the last century, likening his views on coal mining to those of the Liberal Party.
The Greens want to halt the development of new coal mines and the expansion of existing mines.
The minor party, which helped Labor form minority government, has declared the emerging coal seam gas industry will be disastrous for the nation despite creating jobs.
Mr Ferguson told parliament on Tuesday the coal seam methane export industry had great potential for Australia during the next 10 to 20 years.
So, too, did the coal and iron ore sectors, he said.
Mr Ferguson went on to accuse the Greens of trying to undermine and destroy the coal industry in Australia.
Greens leader Bob Brown hit back at the minister on Wednesday.
"Look Martin Ferguson's got his head stuck in last century," he told reporters in Canberra.
"He'd grace an (Opposition Leader Tony) Abbott caucus room extraordinarily comfortably."
Mr Ferguson was an advocate for polluting industries in Australia, Senator Brown said.
"Whether they're logging forests or digging up farmland or drilling into it, there's Martin Ferguson," he said.
"Well, you know, that's the wonder of politics, but Martin Ferguson is not a modern Australian, not a forward-thinking Australian."
Senator Brown described Mr Ferguson as a competent and powerful politician but said he was making decisions that would penalise Australia in the long term.
"He doesn't have the security of Australia's future economy in anywhere near the high regard he's got the instant conversion of the wishes of resource extractors in Australia to do whatever they like."
Australian Coal Association (ACA) executive director Ralph Hillman welcomed Mr Ferguson's attack on the Greens, saying he was talking common sense.
But if the government modelled its carbon tax on the carbon pollution reduction scheme under former prime minister Kevin Rudd, the industry's future was at risk, Mr Hillman said.
"Placing a carbon tax on coal mining operations when our major competitors don't does not make sense," he said.
"It will only serve to shift production and jobs offshore, with no impact on the amount of greenhouse gases emitted."
There were plenty of other coal-producing countries to take Australia's place in export markets, Mr Hillman said.
The ACA favours other models, including the European Union's approach to carbon pricing, and has called on the government to go back to the drawing board to deal with industry competitiveness issues.
"That would involve introducing a carbon price by phased-in auctioning of permits and at a sufficiently low level for Australia to make the transition to a low-carbon economy in the long term without destroying jobs in the short term," Mr Hillman said.
"The government must stand up to the Greens and develop a carbon price policy that preserves the competitiveness of Australia's industries."
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