There is indisputably a public mood to address the perils associated with climate change, but Prime Minister Kevin Rudd's decision to delay the implementation of his far-reaching emissions trading scheme is a victory for thousands of Illawarra workers and the economy at large.

We have long stated the view the scheme went too far too quickly and was set against a global landscape where there would be no tangible benefit to Australian industry nor the planet.

As BlueScope Steel told a Senate inquiry last month, and reiterated through its chairman last week, we would effectively force the nation's steel production offshore to polluting countries such as Brazil, Russia, India and China, by pushing ahead with the scheme in its existing form.

Yesterday Mr Rudd took the tough decision.

It was a tough decision because Mr Rudd had to go against his word, and his environmental credentials are now tarnished in the eyes of many who voted for him.

The Prime Minister, however, leaves himself with a couple of outs: there is a higher ask when it comes to reducing carbon (now 25 per cent below 2000 levels) - but this will hinge on what the rest of the world does. Pragmatism will no doubt rule what happens in the end.

Steelmakers ought to appreciate that their appeals for leniency have been taken into account.

Another year, for instance, will give BlueScope and other manufacturers time to gain a better sense of the international market for their products.

Economic circumstances remain dire, although it is hoped that within 12 months the world will have soaked up stockpiles and manufacturing will fire up by necessity.

Some 12,000 jobs in the Illawarra are underpinned by BlueScope's Port Kembla operations. However, the Rudd-awakening on the carbon scheme is far from parochial pandering.

In its previous form and timing, the scheme was another hurdle for companies to negotiate in the worst economic times since the Great Depression.

In such circumstances, a responsible government must take action on what is directly before it rather than be swept up in what remains a great deal of hypothesis and overzealous argument.

Mr Rudd has done the right thing, keeping his wits about him in a trying environment.