Australian Climate Change Minister Greg Combet on Friday said next year would be an important year for climate change policy, because Prime Minister Julia Gillard had earlier announced that a carbon price would be legislated in 2011.

"We'll consider what the options are for pricing carbon, what sort of mechanisms might be available and what are their relative merits, pros and cons," Combet told the Investor Group on Climate Change Forum in Sydney on Friday.

An emissions trading scheme (ETS), combined with an initial fixed carbon price, is one option to tackle climate change.

According to Australia Associated Press, Combet said a fixed carbon price would provide certainty in the short term. It would allow businesses, the regulator, consumers and government to bed down the system before embracing a fully flexible emissions trading scheme.

Combet said a transition from the fixed price period to a fully flexible ETS with a market price for carbon could then happen some time in the future, as it provides long-term benefit.

The government's multi-party climate change committee will meet again next week.