The Finkel report released last Friday advocated a clean energy target which would require a proportion of electricity to come from generation below a set emissions level.
More than 20 countries have high efficiency low emission coal-fired power stations planned or under construction.
"The idea that coal in any way can be associated with clean energy is simply fantasy", he said.
"Mr Turnbull's leadership is weakened by no less than 25 members of his government criticising his plan for a clean energy target".
Finkel called for the government to set a clean energy target, created to encourage investment in "reliable generation", including coal with carbon capture and storage or gas.
"Our recommendation is an incentive for new generation, it's not a specific prohibition on coal and it's not right for people to interpret that way", he said.
The former leader admitted to having a "moment of mutual bad temper" in the meeting in an exchange with assistant minister Craig Laundy, but said it "ended happily and well".
To avoid that, the "clean energy target" will incentivise the building of smarter grids infrastructure that will allow households and businesses to not just buy power, but generate it and trade it with power companies, and with each other.
"That would make a complete mockery of a very serious process that the chief scientist and his panel followed over months". Mr Turnbull has been weakened and Australians are the loser.
Australia's coalition government on Wednesday denied that it has split over the implementation of clean energy policy, after reports surfaced that more than half of the party was against a Clean Energy Target (CET) recommended by the nation's chief scientist. Permission comes from government.
If there is not a sensible baseload power generation backup plan in place, consumers end up being hit with much higher prices to pay for expensive band-aid solutions. But this was not borne out in Tuesday's special party room meeting.
"It would appear that chaos is the order of the day", he said.
"If we adopt a strategic approach, we will have fewer local and regional problems, and can ensure that consumers pay the lowest possible prices over the long term", Finkel said.
Pressed on when the government would develop concrete recommendations in response to the review, Turnbull said the government would take the time to get it right.
Ultimately, Finkel said: "Security and reliability have been compromised by poorly integrated variable renewable electricity generators, including wind and solar". "What Australians need is wise leadership, not glib leadership". Matthew Stocks, a renewable energy specialist at ANU, hopes the new report will "take the politics out of energy policy" by setting a clear policy that will spur investment in energy infrastructure.
Turnbull said the government had to take action to deal with the challenges in the energy market that had manifested as a effect of the decade long climate wars.
The two latter scenarios are actually pretty similar in their outcomes, but both produce lower prices than business as usual.
"Industry does need certainty", the prime minister said.
"My commitment is to ensure that Australians have affordable, reliable energy, and that we meet our commitments, our worldwide commitments to cut our emissions".