Beattie, speaking at the American Australian Association lunch with the Earth Institute and the World Leaders Forum, said he would increase coal royalties to force the industry to pay for clean coal research, the Courier Mail reported.

He said coal companies had reneged on an agreement to provide $A300 million over five years in voluntary funding towards research.

Just over a year ago on announcement of the COAL21 fund, members included Xstrata Coal; Anglo Coal; BHP Billiton; Coal and Allied Industries; Enhance Place; Ensham Resources; Excel Coal; Felix Resources; Gloucester Coal; Griffin Coal Mining Company; Hunter Valley Energy Coal; Macarthur Coal; Muswellbrook Coal; New Hope Corporation; Peabody Pacific; Rio Tinto; Wesfarmers Energy; and Whitehaven Coal Mining.

“I'm just a bit disappointed that we've ended up with this argy-bargy but let me tell you that's the end of it. We won't be having any more … we are going to have that money for research," the Courier Mail reported Beattie saying last night.

“I'm prepared to make the tough decision to guarantee their future even if they're having a bit of trouble with it themselves."

He said coal companies would rather spend the money on their own projects.

Beattie will meet with coal companies on his return to Queensland.