Queensland is responsible for the bulk of Australia's coal production, a sector that has for decades propped up government budgets and kept millions employed.

The state's right-leaning government passed laws late on Wednesday evening scrapping a series of targets that would have culminated in 80 percent of energy being generated from renewable sources by 2035.

Minister for Energy David Janetzki said fossil fuels such as coal and gas were still needed to keep electricity prices down.

"We're paving the way for private capital to flow into new energy infrastructure, unlocking economic growth and ensuring our state remains competitive in an evolving energy market," he said.

The policy, which extends the life of polluting coal-fired power plants slated to close within the next 10 years, has been widely panned by environmental campaigners.

"This is a dangerous backward step for Queensland," said Ariane Wilkinson from World Wildlife Fund Australia.

"Delaying coal closures indefinitely will have serious consequences for Queenslanders.

"The Sunshine State is already feeling the effects of climate change, and this is a recipe for more fires, floods, heatwaves and mass coral bleaching events."

Despite its growing vulnerability to climate-linked natural disasters, Australia remains one of the world's biggest exporters of gas and thermal coal.