At the Climate Conference currently being hosted in Melbourne, Bracks said the lack of support for the Kyoto Protocol at the Federal Government level had led Victoria to examine other routes to tackling greenhouse emissions.

“In the absence of Federal Government leadership, Victoria is working with other states and territories to develop a state-based national emissions trading scheme,” Bracks said.

“Australian businesses risk being left behind, with a majority of nations around the world acting to fight greenhouse gas emissions. Engaging with states in the US may allow us to further our efforts to protect the environment and our economic prosperity.”

North-eastern US states are working to create a cap and trade program called the Regional Greenhouse Gas Initiative, in response to what they see as a lack of US Federal Government support. Bracks drew parallels with the situation in Australia and sees the possibility for intercontinental co-operation.

“In both countries, in the absence of action at the federal level, cooperative efforts are underway at a state level to develop an emissions trading scheme,” he said.

“This may present opportunities for both countries, and we’ll be pursuing that after writing to our colleagues in other states in Australia.”