MCA has observed both Prime Minister Kevin Rudd and Climate Change Minister Penny Wong are talking down the chances of a global agreement coming from Copenhagen.

“Business certainty will not be served by a scheme that is legislated in Australia in November but then has to be overhauled after the Copenhagen climate talks in December,” MCA said.

“The Minerals Council of Australia has consistently advocated the need for an efficient and effective domestic emissions trading system, a credible global agreement that covers all major emitters, and technologies that can lower the emissions of existing energy sources. These pillars must be aligned and in sync.”

Looking at the United States, MCA has taken Senate Majority Leader Harry Reid’s recent public comments as evidence the cap-and-trade scheme won’t be voted on until next year while the upper house is preoccupied with President Obama’s health care proposals.

MCA broke down the key differences between the American and Australian emissions trading schemes.

“Unlike the CPRS, the US scheme will allow any offsets, local or international, that are approved by domestic agencies (the Environmental Protection Agency for general offsets and the US Department of Agriculture for agriculture offsets).

“Unlike the CPRS, there is no requirement under the US legislation that these offsets be formally recognised under Kyoto Protocol or UN rules.”

MCA said climate change issues would only be solved under a global deal that provided the same disciplines and rules for all major emitting nations.

“It makes no sense for Australia to conclude its scheme without knowing what those rules are,” the industry group said.

“Australia should not impose different rules on itself than the US imposes on its industry and economy, nor indeed other countries.

“Without a global agreement, the proposed Australian CPRS will have no material impact on reducing greenhouse gas emissions, yet will inflict considerable economic burdens on the Australian economy.”

Economic modelling carried out for the MCA has found that 23,510 mining jobs will go under the CPRS, while similar work done for the state governments has projected the disappearance of 126,000 jobs from regional Australia.

MCA said the federal government’s own Treasury modelling forecasted coal mining output would be 35% lower under the proposed scheme.

In a recent story in the Australian, Wong commented on the similarities between the US and Australian emissions trading schemes.

She reportedly said the Obama administration was deeply committed to passing its scheme as soon as possible.

The CPRS was shot down by a 12-seat Senate margin in August, but the proposed scheme has another chance in November.

If the Rudd government’s CPRS, in its current form, is blocked again, the government will be able to call a double dissolution and therefore call an early federal election.

But an MCA spokesperson previously told ILN that Rudd had ruled out an early election and his party would modify the CPRS bill, therefore eliminating the potential double dissolution trigger.