Australia has a "moral" duty to tackle climate change and won't delay action because of the world economic meltdown, the federal government says.

The doom and gloom pervading world markets may have taken the heat out of global warming, but a defiant Climate Change Minister Penny Wong says it's no excuse to delay action.

Senator Wong, in a speech to the prestigious London School of Economics overnight, rejected calls from business and the Opposition to hold off on emissions trading, which is due to start in 2010.

"There is a moral and personal dimension to this debate," she said.

"Ultimately, we are not doing this only for ourselves.

"We have a responsibility to future generations to tackle climate change while we can."

It was now more urgent than ever to act on climate change.

"There will never be an easy time to make the transition to a low-carbon economy."

The Government's plan to start emissions trading in two years' time was on track, Senator Wong said.

Some business groups have strongly criticised the Government's plan for emissions trading, warning of the potential for massive job losses and profit downgrades.

But the glass was half full for Senator Wong, who said tackling climate change could prove a "tremendous boost" to the Australian economy.

Renewable energy industries - including solar, wind, geothermal and wave technology - would expand.

"We have the potential to become world leaders in clean energy technology," Senator Wong said.

Australia could take the lead in providing financial services to the region's emerging carbon market.

Senator Wong dropped a hint to the vocal opponents of emissions trading that they would not have it all their own way.

The Government would pay close attention to the needs of households, and of all industries, not just those protesting against emissions trading, she said.

AAP