Prime Minister Julia Gillard has warned that key promises she made during the federal election may be broken because of the "new environment" created by the hung Parliament.
Ms Gillard says it is no longer "business as usual" for major reforms, including anything associated with climate change.
She told Fairfax that what she said before the federal election on climate change no longer applies because a committee of politicians and experts will now develop the policy.
"We laboured long and hard to develop a market-based mechanism," she said of the emissions trading scheme.
"But I'm recognising the political reality. I campaigned as Prime Minister in an election campaign with policies for the Government.
"We are in a new environment where in order for any action to happen in this Parliament, you need more consensus than the views and policies of the Government and this committee is the way of recognising that."
BHP Billiton chief executive Marius Kloppers this week urged the Federal Government to manage environmental challenges by establishing a clear price signal on carbon as it reviews its emissions trading scheme.
Ms Gillard refused to commit to a specific timetable, but she reinforced her commitment to convening a cross-party committee to discuss the issue of carbon pricing.
"I welcome the statements from Mr Kloppers," she said.
"Obviously many members of the business community, Mr Kloppers included, have made statements and have called over quite a long period of time now for Government to deal with the question of pricing carbon.
"It's absolutely no secret after particularly the election campaign that the Government believes we need to work towards a price on carbon. The Government has consistently said we want to work towards a price on carbon.
"We obviously have indicated we think a market-based mechanism can provide that price.
"But we have also agreed with the Greens and more broadly that we will have an inclusive climate change committee to work towards a better way of addressing climate change in Australia."
But Opposition Leader Tony Abbott said introducing a carbon tax would hurt Australia's international competitiveness and urged Ms Gillard to reject the idea.
"This idea that we here in Australia should put a big tax on our businesses and on our consumers in the absence of similar action from other countries would just put our exports at a terrible competitive disadvantage," he said.
"It's really up to the Government now to confirm post-election what it said pre-election, that they completely reject a carbon tax."
The Greens said BHP Billiton is showing common sense by advocating a carbon price.
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