However, Illawarra-based Liberal Senator Concetta Fierravanti-Wells said the proposed scheme would export local jobs overseas.

On a visit to the region yesterday, Ms Tebbutt said the NSW Government supported the Federal Government's carbon pollution reduction scheme.

"We know if we are going to address damaging climate change into the future we need to put a price on carbon and that is what the scheme does," Ms Tebbutt said.

"We know it will have an impact on electricity prices and other areas of the economy, but the Federal Government has outlined a clear compensation plan to try and address that.

"There are also opportunities in green jobs and emerging industries and we are keen to pursue those opportunities if the scheme passes.

"We have made clear we support compensation for strongly affected industries and we will continue to have this discussion with the Federal Government.

"All of the reports that have been done have showed quite clearly that the cost of inaction is far greater than the cost of action."

Meantime, speaking in Parliament, Sen Fierravanti-Wells said Wollongong and the Illawarra would bear the brunt of any emissions trading scheme.

"A fact not lost by the Illawarra Mercury, which has been giving prominent attention to this debate," she said.

Sen Fierravanti-Wells repeated the claims of BlueScope Steel that the proposed scheme threatened to erode tens of millions of dollars from the company's books and had the potential to threaten the viability of 12,000 jobs supported by its operations.

"It is concerning that the Government has embarked upon such a complex scheme without addressing the concerns of so many vulnerable Australians," she said.