Australia's government may soon finalize an agreement for its carbon trade scheme after a long period of deadlock. The opposition has expressed optimism about reaching a deal by early next week. The government aims to start carbon trading in July 2011, encompassing 75 percent of emissions and potentially becoming the second largest domestic trading platform globally. However, legislation for the scheme has been delayed due to opposition from rival lawmakers. With negotiations ongoing, the government is working to secure additional votes needed to pass the carbon laws. Opposition negotiator Ian Macfarlane is positive that his side will now support a deal. Macfarlane expressed confidence that an agreement acceptable to the party room could be reached, leading to their support. Negotiations on the laws introduced in the Senate will continue throughout the week and into the weekend. The opposition will vote early next week on whether to support or reject the laws. The government has agreed to exclude agriculture from the laws, but the opposition is seeking further concessions for coal miners. The first attempt to pass the carbon trade bills in the Senate was unsuccessful in August. If the bills 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 approved before attending the global climate talks in Copenhagen in December. The Senate is set to finish 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 leader Malcolm Turnbull assuring his lawmakers they will have a say in approving or rejecting any government deal. During a closed-door meeting on Tuesday, 10 opposition lawmakers expressed their opposition to the scheme regardless of any negotiated amendments. However, a party spokesperson stated that more than 10 lawmakers supported Turnbull's policy to negotiate changes. Turnbull, who is currently lagging in opinion polls, is seeking a deal to prevent an early election. The government is lacking seven seats for a majority in the Senate. Junior Climate Minister Greg Combet warned that opposition divisions pose the biggest threat to the carbon trade scheme, which is a key part of Rudd's strategy to combat global warming. Combet informed parliament that the coalition is divided, with the Nationals pursuing their own agenda and the Liberal and National parties in disagreement on climate change. The carbon debate in Australia is being closely monitored abroad, especially in the United States and New Zealand. For more information on Australasian carbon risks and opportunities, Carbon Central - Australia's Climate Change Hub brings together top climate change experts and solution providers. To stay informed on global carbon markets, sign up for the free Carbon Interactive newsletter.