Federal Climate Change Minister Penny Wong has refused to bow to business demands for a softer emissions trading scheme and ruled out allowing a rise in carbon pollution.
In a speech to business leaders today, Senator Wong stuck to her guns on climate change.
Under the government's proposed emissions trading scheme, due to start in 2010, a cap will be set on carbon emissions which will be reduced over time.
Some business leaders have asked that extra emissions be allowed on top of that cap, to encourage new projects.
Senator Wong today flatly rejected the proposal, which could result in a rise in total emissions over time.
"We have a national cap, and exceeding it comes at the price of international credibility," she told a large Australian Industry Group forum at Parliament House.
Senator Wong said Australia could not ask other countries to cut their emissions while increasing its own.
"If we are going to get the global action we need, we will have to act at home," she said.
Allowing emissions on top of a national cap was "fundamentally inconsistent" with the Kyoto process, she said.
Senator Wong asked business leaders to take that into account when lobbying the government on emissions trading.
She did not appear receptive to requests for special treatment for particular industries, saying the whole economy had to play its part to tackle climate change.
Nor did she warm to giving out more compensation to businesses, which some groups have asked for.
Senator Wong said she was open to discussions about how the proposed compensation fund could be redesigned, but was less enthusiastic about offering more money.
Offering more compensation to any industry, or firm, meant other industries would have to shoulder more of the burden of tackling climate change, she said.
"What I ask is that business leaders recognise also the consequences of any particular design suggestion," Senator Wong said.
The government wanted a fair contribution to tackling climate change across the economy, she said.
Heather Ridout, chief executive of the AI Group, took Senator Wong to task on behalf of business, asking for gentler scheme.
"Our view has to be that we ought to have the cap high and the price low, as low as possible, until the rest of the world comes along," Ms Ridout told Senator Wong.
But Senator Wong said there were no easy answers.
"There isn't a menu of easy options when it comes to climate change," Senator Wong said.
In her speech, she also touched on the need to find a low-emissions path for developing nations to lift people out of poverty, and on the critical role of the US in forging a global pact on climate.