These scathing assessments came from the Opposition and minor political parties after Climate Change Minister Penny Wong issued the ''green paper'' on the Carbon Pollution Reduction Scheme yesterday.

She said the plan would reform and transform the economy.

The centrepiece was an emissions trading scheme.

''We are already beginning to feel the economic and environmental costs of inaction on climate change,'' Senator Wong said in an address to the National Press Club.

''But if we delay action any longer, these costs will be felt even more acutely not only by our generation but also our children and grandchildren. The Carbon Pollution Reduction Scheme is a response to climate change that is economically responsible, supports families and prepares Australia for our future challenges.''

But Opposition Leader Brendan Nelson said the emissions trading scheme was akin to a new tax on petrol, groceries and electricity that would ''seriously squeeze middle Australia''.

''This is a day where Rudd's Government has confirmed that there will be an increase in the price of petrol as a result of his new emissions trading scheme,'' he said.

''Offsetting the price of petrol from a new carbon tax with an excise cut is something that has support from us, in fact we proposed it.

''But we believe in cutting the excise further and we also believe that it should be permanent.''

If the Coalition opposes the trading scheme, the Government will need support from the cross-benches to steer legislation through the Senate.

Five Greens Senators share the balance of power with Independent Nick Xenophon and Family First's Steve Fielding in the Upper House.

Greens climate change spokeswoman Christine Milne said the Government was protecting polluters and hurting the community.

''Cash compensation payments to industry and householders will only delay the pain, and increase it when the crunch comes,'' she said.