Parkes MP Mark Coulton has warned of a floodgate of legal claims by a "not thought-through" piece of legislation.

The Warialda-based MP said the legislation will stall ongoing multi-billion dollar projects in the energy, resource, and agriculture sectors.

Labor's bill on climate change passed by 89 votes against 55 and is now on its way to the Senate.

Mr Coulton said the bill, if passed by the Senate, could be used by activists to stop business for non-compliance with the 43 per cent emissions target.

"The experience overseas has shown that legislating targets hands control over major infrastructure projects to Green activists," he said.

"However, my concern is legislating this target which I believe will leave future generations vulnerable to legal claims [in] regards to emissions reduction."

He said the legislation on an emissions reduction target is worrying, but accepts the 43 per cent reduction target that Labor took to the election.

"This 43 per cent is now formally recognised by the United Nations as Australia's emissions reduction target, so there's no need to legislate it, as the Prime Minister and Minister for Climate Change and Energy have previously admitted," he said.

"I am open to sensible policies that support real and practical action to reduce emissions, but I could not support legislation that puts our energy and national security at risk."

Mr Coulton said he voted no to Labor's bill, consistent with his earlier position on the emissions reduction target by Labor and Greens, but defended his decision.

"I am not a climate change denier. I accept the 43 per cent reduction target that Labor took to the election," he said.

"[However] it will mean that decisions on future development may be made by the judiciary rather than a parliament.

"For example, a new highway or rail line, or any other project that might advance our regions could be at risk of being stopped by activists claiming these developments will impact on Australia's 43 percent target.

"This virtue-signalling legislation is not thought-through and the ramifications down the track could be dire for this country."