Fresh economic modelling to be released on Thursday shows emissions trading will not hurt industry or the economy, the government says.
The long-awaited Treasury data, one of the biggest economic modelling exercises ever done in Australia, focuses on what it will cost to tackle climate change.
Climate Change Minister Penny Wong was on Wednesday putting a positive spin on the modelling ahead of its release, saying it shows there is nothing to fear in emissions trading.
Some industry chiefs have warned emissions trading, due to start in 2010, will push up their costs and force them to move overseas.
They want the scheme delayed or more compensation.
Senator Wong says emissions trading will not force businesses offshore.
“What the modelling shows is that Australian industries will remain competitive and there are significant opportunities in us taking action on climate change,” she told ABC Radio.
“We can take action on climate change but also retain a strong economy.”
The government says the modelling shows proposed compensation for industry - they will get up to 90 per cent of their permits for free - will keep businesses afloat.
Treasurer Wayne Swan said the data showed emissions trading would not hurt economic growth.
“What the modelling will show is that we can deal with climate change … without having a dramatic impact on economic growth,” he told Macquarie Radio Network.
The government has not formally released the modelling but sections have been reported in the media on Wednesday.
According to the Australian Financial Review, the modelling shows the government plans to buy up to a quarter of its carbon credits from overseas to meet emissions reductions targets.
This is a relatively cheap way to meet the target but is criticised by conservationists for not reducing emissions in Australia.
Meanwhile, a poll has shown most Australians approve of emissions trading and are willing to pay more to tackle climate change.
The Australian National University phone poll of 1,000 people found 54 per cent of respondents supported emissions trading while 34 per cent opposed it.
At least 60 per cent of those surveyed were prepared to pay more and accept a cut in living standards to help the environment - although the poll was taken before the worst of the world economic crisis hit.
Concern about climate change is translating into people changing their habits.