The partnership has won the endorsement of Australia's mining and energy sectors while environmentalists have condemned it. "The program amounts to a complete abandonment of any real action to address greenhouse gas emissions," according to Australian Green senator, Mr Bob Brown.

While the Federal Government denies it, many commentators believe the bilateral agreement is a sure sign that Australia and the United States intend to pursue greenhouse reductions outside of the legally binding Kyoto Accord.

The European Union, Japan, New Zealand as well as many other countries intend to ratify the Kyoto Protocol before the World Summit on Sustainable Development in South Africa later this year.