By Tom Arup
THE Gillard government's approach to bringing back its emissions trading scheme is ''very much contested,'' insiders say ahead of a crucial cabinet meeting tomorrow.
Government sources said yesterday that new policies on energy efficiency and renewable energy should emerge from the meeting.
But there was still an active debate on the best way to bring back an emissions trading scheme in the second term of a federal Labor government.
Last week, Prime Minister Julia Gillard said she was sticking to the decision to shelve the scheme, with a review of that decision in 2012.
Ms Gillard also ruled out an interim carbon price.
But some ministers are pushing for a commitment to legislate the emissions trading scheme in any second-term Labor government, instead of a 2012 review.
Others, notably members of the NSW Right, want to keep the ambiguity in the position.
The debate has been complicated because if any commitment is made to legislate an emissions trading scheme in the next term, it may have to be included in next year's budget.
Sources say there is conflicting advice about whether the scheme could be included in the budget without losing the surplus that is projected for 2012-13.
There is also expected to be a discussion about how to better define ''community consensus'', which Ms Gillard says she will seek before bringing in a carbon price, with business likely to be approached to help.
The Climate Institute, in conjunction with some major energy companies, will today release findings that are believed to show collective power bills going up $2 billion without a carbon price.
Energy companies with big interests in gas and renewables - like AGL and Origin - and state energy ministers are also seeking clarity on the future of a carbon price because of the uncertainty the current situation is creating for investment in energy infrastructure.
State Energy Minister Peter Batchelor said the most effective way to drive changes in our use of energy was ''the introduction of a carbon price at a national level''.
''The great disappointment I've had since the Liberals and the Greens voted against the CPRS (emissions trading scheme) is that today when we should have been planning how and when conventional coal-fired stations would be replaced, we are still talking about if.''
The Australian Conservation Foundation will release polling today showing that almost half of Australians see no difference between the two leaders of the major parties on climate change.
But in the poll of 1500 people, conducted last week by Auspoll, Julia Gillard is still the most trusted on climate change with 40 per cent people of supporting the Prime Minister and just 17 per cent backing Opposition Leader Tony Abbott.
Forty-three per cent of people said there was no difference between the two.