The Greens have pledged $500 million to assist steelmakers in quitting coal.

The latest election promise from the Greens is for a $500 million fund to be created to help steelmaking regions transition away from coal. 

The party wants to set up a Green Steel Innovation Fund to allocate grants, and a green metals bank to provide finance for businesses to commercialise zero-emissions technologies.

It is part of the Greens' plan to phase out the metallurgical coal industry by 2040.

Greens Leader Adam Bandt says Australia can capitalise on the energy transition.

“It would allow us to create thousands of jobs locally and it would mean we would be a country that makes things,” Mr Bandt said.

“The rest of the world is going to need green steel and we are in a perfect position here, with not only the manufacturing know-how, but also the intellectual know-how and the resources, to be world leaders in green steel.”

Steel and iron regions like Whyalla, the Pilbara, and the Illawarra are expected to be the main recipients of funding.

Mr Bandt says he is confident that the Greens will hold the balance of power in the Senate at this year's poll, and will use that position to push its policy.