A lobby group is opening up a new front against the Federal Government's carbon tax plans by kicking off an advertising campaign.

The Chamber of Commerce and Industry, the Coal Association, the Minerals Council and the Housing Industry Association have formed a group they call the Australian Trade and Industry Alliance.

It says the Government's deal with the Greens and the independents is flawed and will harm businesses.

In an echo of the mining industry's tactics against the resources tax last year, the group says it will run a range of media ads against the carbon price.

Last year the Minerals Council spent $17 million in its campaign against the super profits tax and it was successful in watering it down.

It was also credited with helping to oust Kevin Rudd from the Lodge.

"The key message is the carbon tax means pain but no environmental gain," Alliance spokesman Peter Anderson said.

"It would embed into the cost of doing business in Australia costs that comparable nations with whom we compete don’t share, and that means we’re weakening our own job security as well as our industry."

Mr Anderson will not say how much the group is prepared to spend on its ad campaign.

The first ads running in newspapers today says Australia produces less than 1.5 per cent of global emissions.

But a government spokesman says Australia has the largest per capita carbon emissions of any developed country and a carbon price is part of a comprehensive plan to reduce pollution.

'Flawed proposal'

The Government says it has consulted widely on the plan and had a number of round table groups.

Mr Anderson was a member of one of those groups, but says the carbon tax is a "flawed proposal" despite the consultation.

"A proposal that’s been put together behind closed doors is no substitute for a full, open debate in democracy like ours," he said.

The Government says there are other countries who are doing something about putting a price on carbon, including New Zealand, provinces in Canada, states in the United States, the European Union.

It has also released Treasury modelling showing that the economy and jobs will continue to grow under a carbon tax.

But Mr Anderson says the schemes in place in other countries cannot be compared to the Government's plan.

"There’s no economy-wide carbon tax of the type proposed by the Government anywhere else in the world," he said.

"Our small and medium businesses for example, they’re not big polluters, but the carbon tax simply means the cost of doing business is increased.

"That’s an unfair impost, particularly if there’s no net benefit to the global environment."

He says the Government has moved too quickly on this issue.

"It doesn’t have the design of a carbon tax right and even though it’s tried to compensate households and some businesses, the fact it’s had to do so is itself evidence that its proposal is going to inflict pain on our economy and our community," he said.

Federal Climate Change Minister Greg Combet says nothing will convince the Government to abandon the carbon price.

"You've got to stand up for what you believe in. We must make this reform, this is a long-term reform to our economy, that will have environmental benefit," he told Channel Nine.