The Shadow Treasurer, Malcolm Turnbull, issued the challenge yesterday as the Government stressed there would be compensation for those hit by the increases in energy bills.

The Government is committed to introducing the scheme in 2010 - an election year - but the complexity of the task has been consuming the cabinet as it strives to have a draft model ready this year.

Concerns about the effect of the scheme on the coal industry are thought to have been a factor in the weekend byelection in Gippsland.

Mr Rudd, who believes clean-coal technology should be part of any solution, moved to reassure the industry yesterday.

"I'm a Queenslander - I'm a big believer in coal," he said.

On Friday, the Government's climate change expert, Ross Garnaut, will hand down his report.

It will recommend a broad scheme that encompasses as many energy sources as possible, including petrol.

Cabinet has decided to offset a carbon tax on petrol by reducing the excise, thus ensuring there is no net price rise.

Mr Turnbull said when the Howard government was devising its scheme, 2012 was the earliest it could have started, given the complexities.

"What Kevin Rudd did, to show how macho he was and how committed he was to fighting climate change, he said 'I'll start it two years earlier' … I think that guarantees that it will go off half-cocked, " he said.

But the Treasurer, Wayne Swan, said the previous government should have moved years ago and the longer the delay, the greater the cost when a scheme was eventually implemented.