FOOD prices are set to rise under the Federal Government's carbon tax, with some of the nation's largest food retailers expected to be hit with potential carbon bills of millions of dollars a year.

A national survey of 500 food and grocery retailers also revealed 83 per cent intend to pass on the cost of a carbon price in higher prices, reports the Daily Telegraph.

The survey follows the release of the Department of Climate Change and Environment's national greenhouse reports showing leading companies' carbon emissions.

Even though a carbon price is yet to be determined, Woolworths could be faced with a potential annual carbon bill of about $10 million a year, based on a carbon price of $26 per tonne, which industry experts and the Opposition are using as a rough guide.

The Federal Government has admitted prices will rise, but vowed to compensate families for any price rises associated with a carbon price, including groceries.

It claims any threat of rising prices for consumers was "scaremongering" as a carbon price was yet to be set, and low-income families would be helped with cost of living pressures.

Fears of price rises come as business leaders back Opposition Leader Tony Abbott's pledge to scrap Labor's carbon tax if the Coalition wins power.

Australian Chamber of Commerce and Industry (ACCI) chief executive Peter Anderson says the Federal Government's planned introduction of a carbon price in July 2012 will damage the economy.

"The architecture of the carbon tax that the government outlined last week was inherently uncertain in its own right," Mr Anderson told ABC Radio today.

Australian Industry Group chief executive Heather Ridout said her group would not support a carbon tax that hindered Australian business and industry and sent jobs offshore.

The Federal Department's greenhouse and energy emissions report, released on Friday night, was split into Scope 1 - emissions directly released by the company - and Scope 2 - emissions released through using electricity.

If companies were to be liable for both Scope 1 and Scope 2 emissions, Woolworths, which is a big user of refrigeration and transport, would face a bill of $73 million based on emissions of almost 3 million tonnes per year.

If food retailers were only liable for every tonne of Scope 1 emissions, thought more likely, Woolworths' bill would still be almost $10 million at $26 per tonne of carbon, based on Scope 1 emissions near 360,000 tonnes, Wesfarmers would cop $6.2 million and Lion Nathan $2.7 million.

A spokeswoman for Woolworths said it supported the Government's action on climate change and said it believed a "hybrid" model was the best mechanism.

However, it said it could not forecast potential price impacts until more details of the scheme were released.

Climate Change Minister Greg Combet said it was too early to speculate on what prices in different sectors might be affected.

But Opposition Leader Tony Abbott yesterday said he would "'wind back" the scheme if the Coalition won the next federal election.

"Not only will Julia Gillard's carbon tax increase the price of electricity and petrol, it is also a tax on food."

The United Retail Federation survey of 525 members found 83 per cent of food and grocery retailers would pass on a carbon price and 78 per cent said it may affect jobs and staff hours.

The Government is to bring in a fixed carbon price in July next year which will then convert to a floating market-set price under an emissions trading scheme by 2015-2017.

"Tony Abbott is just trying to exploit people's concern about rising prices to scare them about a carbon price. His claims are rubbish. The Government has committed to use every dollar raised by a carbon price paid by big polluting businesses to help people with any price impacts," Mr Combet said.