BHP chief executive Marius Kloppers says Australia will have to move to significantly cut greenhouse gas emissions if it wants to remain internationally competitive.
And he says it is in Australia's long-term interest to move ahead with a carbon price before a global agreement.
Professor Garnaut says the message from BHP is not unexpected but it is sensible.
"It does make sense for us to begin the transition now so that we're well-placed for the future world of carbon constraints that sooner or later is going to emerge," he said.
This is a pretty significant statement which I suspect other major Australian companies will follow.
It also makes the Liberals, especially Tony Abbott's position on environmental short sighted. While in many ways in makes Malcolm Turnball's position, visionary to Australias need especially considering the concessions he got out of Labour.
It will be interesting what back-peddling Tony Abbot is prepared to do as more business here and overseas start gearing up for a increasing carbon economy.
As for Labour who know what deals they will make....maybe some sort of forum?