Meanwhile, business and the economy have moved on. Large companies, such as Rio Tinto, have backed Bowen’s scheme which comes with safeguards such as a cap of $75 a tonne on the price of carbon units. Bowen has left the electricity generation sector out of the scheme because renewables are now competitive even without it.

Bowen has the power to introduce most of the scheme by regulation, since he is simply tightening the existing baselines to a level where they will start to bite.

But parliament will have to pass legislation to allow companies that reduce emissions faster than the baseline to sell the excess to companies that fail.

The Coalition will be shooting itself in the foot if it opposes the measure, which business strongly supports. It was actually their idea that businesses who are successful in cutting emissions should be able to sell their credits. Former energy minister Angus Taylor floated the plan when he was in government but then, as with so much else, buried it.

Opposition Leader Peter Dutton must start supporting constructive change.

The Greens and independents, such as swing senator David Pocock, should also put their qualms aside and pass the legislation.

They should, however, use their leverage to improve the Safeguard Mechanism.

The government must do more to prevent rorts, such as the use of dodgy carbon offsets investigated by former chief scientist Ian Chubb.

In a review published last week, Chubb called on the government to cancel one form of offset known as “avoided deforestation” which did not really cut carbon emissions. Farmers were being paid for not cutting down trees which they never actually intended to cut down in the first place.

The Greens should also push for more scrutiny and transparency both in the creation and use of carbon offsets and in the measuring of emissions, especially in the gas and coal sector.

The government should also explore the possibility of linking Australia’s scheme with international carbon emissions trading programs such as those in the European Union and New Zealand. Businesses could eventually be allowed to meet a shortfall in emissions reduction by purchasing international permits.

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Now that the federal government is imposing a price on carbon, Australian businesses deserve protection against unfair competition from countries which are not taking similar action. Bowen this week, for the first time, said he might follow the European Union and Britain by imposing a carbon border tax.

The tax can be used to level the playing field and reduce the risk of “carbon leakage” where manufacturers open factories overseas in countries with weak climate laws and then export cheaply to Australia.

The architecture of Australia’s climate policy is finally taking shape and it must be solid enough to last.