Climate Change Minister Penny Wong has dismissed claims the emissions trading scheme will hurt households and industries struggling under the financial crisis.
Treasury's economic modelling has revealed the average household bill will rise by $7 a week when the scheme goes ahead.
Senator Wong says the logical economic move is to act now, or risk further stress on the economy.
“Delay simply increases the costs,” Ms Wong said.
“If we delay acting on climate change it simply makes it more expensive later.
“So the economically responsible thing to do is to take action on climate change, and to do so in a measured and responsible fashion.”