Ditch emissions trading scheme Labor: Hunt

Federal Environment Minister Greg Hunt has some advice for Labor on its proposed emissions trading scheme, which he believes will always be a carbon tax.

"Completely ditch the policy."

Mr Hunt says it doesn't matter how Labor dresses it up, an ETS is a carbon tax and its intention is to drive up the cost of living for Australians.

That rule even applies to the ETS proposed by John Howard in 2007, he said.

Mr Hunt, who once co-authored a thesis called 'A Tax to Make the Polluter Pay', says the only difference between a carbon tax and an ETS is a fixed or floating price.

"Either way, it's taxing and driving up the price of electricity," he said.

Labor remains committed to introducing an ETS, with the details to be released prior to the next election.

The party insists the policy is not a carbon tax.

The government's direct action plan, and its $2.55 billion emissions reduction fund, pays volunteer polluters not to pollute.