After a long period of disagreement, Australia's government may finally be able to finalize a deal for its extensive carbon trading scheme by early next week, as the opposition has expressed confidence in reaching an agreement. The government's goal is to have carbon trading implemented by July 2011, covering 75 percent of emissions and potentially becoming the second largest domestic trading platform after Europe. However, the laws needed for the scheme have been stuck in limbo for months due to opposition from rival lawmakers. With negotiations ongoing, the government, lacking a majority in the Senate, has been working with the main opposition party to secure the additional votes necessary for the carbon laws to be passed. Ian Macfarlane, a key negotiator for the opposition, is optimistic that his party will now support a deal. Macfarlane expressed confidence that a favorable outcome will be reached in negotiations on the laws, which will be presented to the party room for consideration. He indicated optimism that the party room would support the proposed laws. Discussions will continue throughout the week and into the weekend, with the opposition expected to vote early next week on whether to support or reject the laws. The government has agreed to permanently exclude agriculture from the laws, in response to a key opposition demand, but the opposition is also seeking further concessions for coal miners. The Senate rejected the carbon trade bills in August, and if they are rejected again this month, it could lead to an early election. Prime Minister Kevin Rudd is pushing for the 11 bills to be passed before the global climate talks in Copenhagen in December. The Senate is set to adjourn on Nov. 26, but Rudd is willing to extend the sitting if necessary. The opposition coalition is split on climate policy, with leader Malcolm Turnbull promising his lawmakers the opportunity to approve or reject any deal with the government. This division was evident at a recent closed-door meeting where 10 opposition lawmakers insisted on voting against the scheme regardless of any negotiations for amendments. However, a party representative stated that more than 10 lawmakers supported Turnbull's policy to negotiate changes. Turnbull is lagging in opinion polls and is seeking a deal to avoid an early election. The government is lacking seven seats for a majority in the Senate. Junior Climate Minister Greg Combet expressed concerns about opposition divisions posing a threat to the carbon trade scheme, a key component of Rudd's global warming policy. Combet noted that the coalition is divided, with the Nationals pursuing their own agenda and the Liberal and National parties at odds over climate change. The carbon debate in Australia is being closely monitored abroad, especially in the United States and New Zealand, where lawmakers are also discussing proposals for emissions trading. For more information on Australasian carbon risks and opportunities, visit Carbon Central - Australia's Climate Change Hub, which features leading climate-change experts in one location. To stay updated on global carbon markets, sign up for the free Carbon Interactive newsletter.