Australian Prime Minister Julia Gillard on Tuesday said she knows many people were disappointed by the failure of the Emission Trading Scheme (ETS), but it will take more time to put a price on carbon.

Cabinet meets on Tuesday afternoon to work on a new climate policy to take to the election.

Gillard has been sticking with Labor's plan to delay the emissions trading scheme (ETS) to at least 2013, after the scheme was knocked back by the Senate.

"I understand there are millions of Australians disappointed that we have not yet been able to put a price on carbon, I am disappointed by that too," Gillard told reporters in Parliament House in Canberra.

But Gillard reiterated that a deep community consensus must be built before carbon could be priced.

She said there were "other steps" the government could take on climate change.

Her government would take the time needed to get climate policies right.