Mr O'Malley told the Mercury the $300 million steel assistance package promised by the Government meant carbon would not be a problem for BlueScope for the next four years.

"It's a pragmatic solution to a complex problem," he said. "I think it materially mitigates our carbon tax liability for the next four years.

"I think I'm satisfied with where we've ended up. I don't think carbon will be an issue with us for the next four years."

About 60 per cent of the $300 million will go to BlueScope, which at 12 million tonnes a year is one of Australia's most intensive emitters.

The package was in part designed to stop steelmakers moving offshore.

But Mr O'Malley rejected the assumption taxpayers now have a stake in BlueScope's survival.

"We're paying for the support we get," he said.

"My personal commitment is to run a company that is a steel producer in Australia for the long term, that's my personal commitment. And I think it's very well supported by our board and the management."

Australian Workers Union Port Kembla Branch secretary Andy Gillespie said BlueScope might end up better off than before the carbon package.

"It seems on the surface ... that the steel industry has been taken care of," he said.

"I think they'll end up slightly in front, actually. If they do the calculations right, they will."

But Mr O'Malley said the package may not be enough to cover the rising costs of coal and other fuels used in steelmaking, but he was confident these costs could be reviewed in coming years.

Member for Cunningham Sharon Bird said she was confident climate change action had been taken in a way that protected jobs.

"Given the challenges that the steel industry is facing at this time, it was important that we do that," she said.

South Coast Labour Council secretary Arthur Rorris said the clean technology investment incentives provided a great opportunity for the Illawarra.

He added that it was time for Opposition Leader Tony Abbott to apologise to the people of the Illawarra for scaring them about losing their jobs under the plan.

Member for Throsby Stephen Jones welcomed the steel assistance package.

"I think it's got the balance right between taking credible action on reducing carbon emissions, and at the same time protecting manufacturing jobs and steel industry jobs in particular," he said.