Australia on Friday came one step closer to approving the National Energy Guarantee, or NEG, a contentious energy and climate policy meant to curb emissions and provide some stability to the country’s volatile energy market.

State energy ministers agreed to move the proposal forward, according to Prime Minister Malcolm Turnbull’s government, which announced the decision on Friday morning.

The states’ approval is a preliminary step that keeps the proposal alive. Before it can be approved at the federal level it must first undergo additional negotiation. Some critics, including environmentalists, have said the policy does not go far enough to combat climate change.

Here’s a look at the NEG and what its impact is likely to be.

What is the NEG?

The NEG is a broad energy proposal that bundles two policies into one: energy reliability and a reduction in greenhouse gas emissions.