Australia has been urged to follow the advice it's giving to developing countries by increasing its gasoline prices to help reduce emissions of greenhouse gases.

Australian Prime Minister Kevin Rudd has vowed to introduce a carbon trading scheme by 2010. It's designed to give companies a financial incentive to reduce greenhouse gases such as carbon dioxide.

"This will be a tough decision. We recognize that and we won't be walking away from it. We will provide support to industry during the adjustment period."

A draft report on climate change released on Friday recommended the government sell a limited number of permits to pollute. The permits could then be sold by cleaner businesses to companies creating more pollution.

Public concerns have focused on the impact of such a scheme on gasoline prices, which are already near record highs and are pushing up inflation as well as interest rates.

Bob Brown is the leader of the Green Party.

"There should be no one who escapes from their responsibility to reduce greenhouse gas emissions."

Rudd hopes to unveil his government's final blueprint for the emissions scheme in December and introduce legislation to Parliament next March.

Australia is one of the world's worst carbon polluters per capita because of its heavy reliance on abundant coal reserves.

As the driest continent after Antarctica, it is also considered one of the most vulnerable countries to climate change.