Bushfires burn as Australia prepares final ETS laws

By Michael Perry

SYDNEY (Reuters) - After months of political haggling the Australian government will unveil its revised carbon trading laws this week, with a vote expected by the year's final day of parliament on Thursday.

If the emissions trading scheme (ETS) is rejected by a hostile Senate for a second time, Prime Minister Kevin Rudd would have a trigger for a snap election on climate change.

Rudd's Labor government has a commanding lead in opinion polls over the Liberal Party. Elections are due in late 2010.

"Everyone in Australia ... this weekend would work it out that we are among the hottest and driest continents on Earth. We will feel the effects of climate change fastest and hardest," said Rudd, referring to more than 80 bushfires in Australia and temperatures over 40 degrees Celsius (104 degrees Fahrenheit).

"We must act this week and the government will be doing everything possible to make sure that that can occur," he said.

Climate Change Minister Penny Wong said on Sunday that an amended ETS would be presented to opposition parties on Tuesday for their consideration before a vote in the Senate.

"We anticipate that we will be in a position to put a very clear offer to the opposition on Tuesday morning," Wong told Australian television. "The (opposition) coalition negotiators know broadly where we are likely to land."

The scheme, due to start in July 2011, will cover 1,000 of Australia's biggest polluters and will be the second domestic trading platform outside of Europe, putting a price on every tonne of carbon emissions.