Prime Minister Julia Gillard said on Thursday that she welcomes the pronouncements made by BHP Billiton boss Marius Kloppers yesterday on carbon pricing in Australia, stressing at the same time that while the federal government is not rushing on the matter, the likelihood of a carbon tax is an open option for her leadership.

Ms Gillard said that the call of BHP chief for the government to assume active leadership on the carbon tax issue was valid even as Mr Kloppers reminded her government that it should take action soon even in the absence of a global effort to reduce carbon emissions.

In the same speech, the BHP top honcho called on the nation to consider viable alternatives so it can slowly wean its way out of its over-dependence on coal-fired power generators, leaving note at the same time that Australians must brace themselves for the expected additional costs of using greener source of energy.

The prime minister lauded the statements made by Mr Kloppers as she reiterated that the present government is committed to seriously include the issue of carbon pricing on its legislative agenda, stressing that a cross-party committee would be established to take up the issue.

However, Ms Gillard said that she cannot commit yet on a specific time table for the legislative measures that would lend its support on the carbon initiative as she stressed that the government "has consistently said we want to work towards a price on carbon and as previously indicated, we think a market-based mechanism can provide that price."

The prime minister also revealed that a prior arrangement has already been worked out with the Greens Party, in which "we will have an inclusive climate change committee to work towards a better way of addressing climate change in Australia."

On its part, the Greens party leadership praised the initiatives made by BHP Billiton though its chief executive, saying that the giant mining firm simply displayed common sense when its surprised even the resource industry by advocating a carbon price.

Meanwhile, opposition leader Tony Abbot urged Ms Gillard to throw out the idea of a carbon tax, stressing that the initiative would only damage the global competitiveness of Australia by imposing too many taxes on the country's business operations, which he said "put our exports at a terrible competitive disadvantage against other countries."

Mr Abbot reminded the prime minister that "it's really up to the government now to confirm post-election what it said pre-election, that they completely reject a carbon tax.