Launching what she described as "a gentle approach to emissions trading". Wong said the time for action on climate change is now.

"We confront a daunting reality we cannot continue to pour carbon pollution into the atmosphere as if there is no cost," she said.

"The 12 hottest years in history have all been in the last 13 years. As one of the hottest and driest continents on earth, Australia's economy and environment will be one of the hardest and fastest hit by climate change if we don't act now.