Australia's government may finally reach an agreement on its carbon trade scheme by early next week, following months of deadlock. The government aims to start carbon trading in July 2011, covering 75 percent of emissions, making it the second domestic trading platform after Europe. However, the laws governing the scheme have faced delays due to strong opposition from rival lawmakers. Negotiations have been ongoing with the main opposition bloc to secure the necessary votes to pass the laws, and opposition negotiator Ian Macfarlane is now confident that a deal will be supported by his side. Macfarlane expressed confidence that a favorable outcome would be reached for consideration by the party room. He mentioned that negotiations on the laws, recently presented in the Senate, would persist throughout the week and weekend. The opposition is scheduled to vote on the laws early next week, deciding whether to support or reject them. The government has already agreed to exclude agriculture permanently, as demanded by the opposition, but further concessions are being sought for coal miners. The carbon trade bills were initially defeated in the Senate in August, and if they are rejected a second time this month, it could lead to an early election. Prime Minister Kevin Rudd is aiming to have the package of 11 bills passed before attending the global climate talks in Copenhagen in December. The Senate is scheduled to adjourn for the year on Nov. 26, but Rudd is willing to extend the sitting if necessary. The opposition Liberal and National party coalition is divided on climate policy, with opposition leader Malcolm Turnbull assuring his lawmakers that they will have the opportunity to approve or reject any deal with the government. During a closed-door opposition party room meeting on Tuesday, 10 opposition lawmakers expressed their belief that the party should vote against the scheme regardless of any negotiated amendments. However, according to a party spokesman, more than 10 lawmakers expressed support for Turnbull's strategy to negotiate adjustments. Turnbull, who is lagging in polls, is seeking an agreement to prevent the possibility of an early election. The government is seven seats away from having a majority in the Senate. Junior Climate Minister Greg Combet stated on Tuesday that opposition disagreements pose the biggest threat to the carbon trading scheme, a key component of Rudd's plan to combat global warming. Combet informed parliament that the coalition is clearly divided, with the Nationals pursuing their own agenda and the Liberal and National parties in disagreement on the issue of climate change. The carbon debate in Australia is being closely monitored abroad, especially in the United States and New Zealand. To access comprehensive articles on carbon risks and opportunities in Australasia, visit Carbon Central - Australia's Climate Change Hub, which features top climate change experts and solution providers. For more news and analysis on global carbon markets, sign up for the free Carbon Interactive newsletter.