The political deadlock over a renewable energy target is all but broken, with the Coalition and Labor agreeing on a pared-back goal with conditions.

The two parties agreed to cut the target from a legislated 41,000GWh to 33,000, ending months of uncertainty that stalled clean energy investment and cost jobs.

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However, Labor won’t support a last minute “red herring” of wood waste burning in the target and will vote against that part of the legislation when it comes before the parliament.

Industry Minister Ian Macfarlane said he was confident he could get the waste wood fuel proposal through the Senate with the help of the crossbench.

Motoring Enthusiast senator Ricky Muir wants the inclusion of biomass in the target and Mr Macfarlane said other senators had voiced similar intentions.