Prime Minister Kevin Rudd has warned business his government's commitment to tackling climate change will come at a cost. Mr Rudd was responding to the Business Council of Australia's (BCA) finding that emissions trading would force a third of Australian businesses to go under unless the scheme was fundamentally redesigned. The BCA released modelling last week showing emissions trading would be fatal to many companies, and slash the profits of others. The council issued a list of demands for the federal government including holding off on emissions trading until international agreements are forged. Mr Rudd says he welcomes talks with the BCA but warns emissions trading will come with a price tag. ''We, as a government, are committed to taking tough decisions and tough action for the economy's long-term interest and also for the environment's long-term interest,'' he told ABC Radio today. ''Part of that is acting responsibly on climate change and part of that, in turn, means acting through a pollution reduction scheme. ''This will not come cost-free.'' Mr Rudd says he expects robust discussion with the BCA as the government talks through their concerns. ''I'd say to them, as I say to other business, that this will not come cost-free because if you roll the clock ahead 10, 20 years, 30 years, overall across Australia what people are saying is this: 'We have wasted enough time, it's time to act','' he said. ''If we fail to act, the economic cost to Australia will be huge. ''I'd say to our friends in the business community; 'Yep, we're up for a discussion, we're up for a debate, we're up for a robust engagement but this is not going to come cost-free'.''