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He argued that for an aluminium smelter to leave the UK and go to another country would not make much difference to climate change.
But it would make a "huge difference" to those who lost their jobs as a result, he said.
Energy companies claim that green taxes are to blame for around 10% of the average household's energy bill.
Energy Minister Michael Fallon is understood to be looking at ways to reduce the impact of environmental measures have on household energy bills, The Times reported.
George Osborne has suggested that Britain should not price itself out of international energy markets by placing too heavy an environmental burden on suppliers.
The Chancellor was speaking after a landmark report by Intergovernmental Panel on Climate Change found that global warming was "unequivocal" and human influence on the climate clear.
It also comes after Ed Miliband pledged that Labour would freeze energy bills if it won the next election.Interviewed ahead of the Tory party conference, Mr Osborne told The Times:
The Chancellor George Osborne is to warn the environmental lobby that Britain should not be “in front of the rest of the world” in tackling climate change.
In an interview with The Times on the eve of the Conservative Party conference, he admitted the Government would keep a "very, very close eye on the affordability of energy prices going forward", but he dismissed Labour leader Ed Miliband's price freeze plans.