Federal Labor is stepping back from its support of Adani's proposed multi-billion-dollar Queensland coal project.

The Indian company is still to decide whether to proceed with its Carmichael mine in the Galilee Basin.

Earlier this month, Federal Opposition Leader Bill Shorten backed the project.

"I support the Adani coal mine so long as it stacks up. I hope it stacks up," Mr Shorten said.

But Labor's energy and environment spokesman Mark Butler today warned the development could hurt other coalmining areas.

"It will simply displace existing coal operations elsewhere in Australia," Mr Butler said.

"There will be jobs lost elsewhere in Queensland or there will be jobs lost in the Hunter Valley."

Environmentalists are furiously campaigning against what would be Australia's biggest coal mine.

The Federal Coalition and Queensland Labor Government support the venture and the hundreds of jobs it would deliver.

Federal Resources Minister Matt Canavan said the Opposition was prioritising inner-city voters over hundreds of jobs in Queensland.

"[Labor] wants to chase Greens' votes and shut down one of the industries that drives our economy," he said.

"Federal Labor is at odds with the Queensland Labor Government, the unions, Indigenous groups and regional communities of central and north Queensland, who all want the jobs from the Adani project and the other mines in the Galilee Basin.

"We support the resources industry and the tens of thousands of jobs it creates."

Westpac rules out lending to project

Westpac last week released a climate change policy stating it would only lend to projects involving higher-quality coal.

The decision effectively ruled out financing the Adani development and any other ventures using coal from the Galilee Basin.

Mr Butler said the bank's move was further proof "the economics of this project don't stack up".

"The demand for thermal coal exports around the world is in rapid decline," he said.

"I think instead we should be thinking about other economic development and job opportunities for North Queensland."

He said the Carmichael project would need a "miracle" to proceed.

Adani is seeking a $900 million taxpayer-subsidised loan for a rail line to the Abbot Point coal port.

According to Forbes' rich list, group chairman Gautam Adani and his family are worth more than $8 billion.