A GENERATION ago Bob Hawke and Malcolm Fraser were great rivals in Australian politics, formidable leaders who fought with vigour and passion for their principles. Last week both men re-engaged in one of the most pressing contemporary political debates.

But this time around, the former Liberal and Labor prime ministers were on a unity ticket. Mr Fraser joined dozens of prominent individuals and organisations to support tackling climate change by placing a price on carbon pollution. Then Mr Hawke returned to Canberra where he backed Julia Gillard on the carbon price and reminded us that economic prosperity and environmental protection are not mutually exclusive.

Last week we also saw leading economists sign an open letter saying that putting a price on carbon was the cheapest and most efficient way to tackle climate change. And a remarkable grouping of religious leaders from across different faiths and denominations urged the government to press ahead with a carbon price. Behind the scare campaigns, there is now a significant consensus in support of the Gillard government's policy.

The scientific consensus on climate change is clear. It would be irresponsible for a government to ignore the evidence. Climate change poses a significant economic challenge. We need to decouple growth in our economy from growth in pollution.

The best way to do this is though a carbon price. The government's carbon price will create a powerful incentive for large businesses to invest in ways of reducing their pollution. Our region is well placed to benefit from this industrial transformation. Already, the Hunter region is proving it can lead the world in the field of clean energy technology development.

Newcastle is home to the government's $100 million Smart Grid, Smart City project, evidence of our support for improved efficiency in the electricity industry. Newcastle is also home to some of the world's leading research hubs like the Australian Solar Institute, the CSIRO's Energy Centre and the Newcastle Institute for Energy and Resources within the University.

When a carbon price is introduced the government will use a significant part of the revenue to protect mining and steel jobs and ensure these businesses remain competitive in the international market. The government will also devote at least half the carbon price revenue to assist pensioners and low and middle income households to meet any price impacts.

The remainder will be used to invest in clean energy programs. The Hunter has the opportunity to thrive in this sector, to create jobs and strengthen the local economy. It is time for Tony Abbott to support the government in this important reform.