Lower income families could be disproportionately affected by the Emissions Trading Scheme

A new Treasury paper reveals how the Government's main approach to handling the climate crisis, could affect families.

It demonstrates how household costs will rise along with carbon costs - and hit those on lower incomes the hardest.

Victoria University climate expert Adrian Macey says it sends a message to the Government about the ETS and moving towards a just transition.

He says it's a think piece - and raises the question of how to help the people most affected, compared with others.