"Environment Secretary David Miliband has confirmed the government is holding discussions on tackling climate change using green taxes.
He refused to confirm details, shown in a leaked letter, which may include "pay as you drive" tax, cheap-flight tax and levies on energy-wasting appliances.
He told Sky News that "the longer we wait, the more costly it will be".
Meanwhile Conservative leader David Cameron has told the BBC he would be prepared to tax air travel.
Liberal Democrat leader, Sir Menzies Campbell, said "hard choices" had to be made to combat climate change."
The world is changing. Soon it will be no more morally acceptable to drive a chelsea tractor than to be a burglar.
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