Negotiations between Labor and the Coalition to establish a new renewable energy target by 2020 have broken down, plunging the clean energy sector into uncertainty.

The government wants to reduce the renewable energy target (RET), which requires 20 per cent of Australia’s energy to come from renewables by 2020.

Household energy use has declined since the initial target of 41,000 gigawatt hours was established.

The government argues the existing target would therefore exceed expectations and should be slashed to a “real 20 per cent” or about 27,000 gigawatt hours.

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Labor is opposed to the reduction in the target and has abandoned negotiations with the government, claiming the coalition won’t budge on its position.

Industry Minister Ian MacFarlane said the breakdown in talks added to the uncertainty already hurting the industry.

A recent Climate Council report has found the renewables sector is collapsing due to political game playing, with investment falling 70 per cent over the past year.

– with AAP