Climate Change Minister Greg Combet has given a clear sign the Federal Government is prepared to consider introducing a carbon tax.
But the Greens advocate a tax as an interim measure and the chief of BHP has also endorsed the idea.
Mr Combet says the Government is determined to put a price on carbon and the new parliamentary committee on climate change will consider all options.
"In the political reality in the formation of the Government, the circumstances are a bit different than we anticipated," he said.
"It does mean that alternative policy options will come onto the table; we will be looking at the various options for the development of a carbon price as I said and we'll thoroughly subject them to proper evaluation.
"Things will be stress tested, the proper modelling and work and expert advice will be done, but serious work will be performed to try to develop the best possible option for this economic reform."
23 September 2010
A Carbon Tax Back in Play Down Under
Australia's politics over climate policies continue to churn. From ABC News: