Industry warns against carbon bill block

The centrepiece of the federal government's direct action scheme is under threat from hostile crossbench MPs in the Senate, which could render millions of dollars of emissions reduction projects worthless.

The government will introduce amendments to the carbon farming initiative, setting up the centrepiece to its direct action, the $2.55 billion emissions reduction fund, during the spring sitting of parliament.

However, there could be a "major problem" for industry if Labor, the Australian Greens and crossbench senators voted it down, News Corp Australia reported on Wednesday.

The 157 projects under threat include one to harnesses waste gas from landfills run by councils, as well as tree planting and deforestation prevention schemes.

The projects need the emissions reduction fund to be passed to create a market for their emissions reduction units, worth about $600 million a year over four years.