Prime Minister Julia Gillard has told Australia's steel industry that it remains critical to the nation's future even as the country moves towards a low carbon economy.
But she concedes the steel industry faces uncertainty and has some hard work ahead if it is to survive in a clean energy world.
"For manufacturing and steel in particular, the challenges of transition demand a more targeted and immediate response," Ms Gillard told the Australian Steel Institute convention in Canberra on Tuesday.
"I know today there are hundreds of steel workers facing a different future as they leave the industry."
More remained in the industry who were wondering what would happen to them as well.
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Ms Gillard said the future for manufacturing was in innovative and efficient practices which was why the government would provide permits to the steel industry to cover the impact of the carbon tax.
The prime minister will introduce legislation to parliament shortly after midday (AEST).
The government will invest in energy-efficient capital equipment and low pollution technologies and products through a $1.2 billion clean technology investment and innovation program.
"This will assist the sector to transform into an increasingly efficient and sustainable industry in a low carbon economy," Ms Gillard said.
"That is what the government's steel transformation plan is all about: transformation.
"It is a bridge to build industry resilience and competitiveness."
