And farmers face serious challenges if drastic changes are not made to legislation it plans to introduce as early as next week.

While the government has bowed to pressure to delay the start of its ETS because of the global economic recession and will wait for the outcome of the international climate change summit in Copenhagen at the end of this year, it wants to legislate for the scheme before Parliament rises for the winter break at the end of June.

But it will not be making any fundamental changes.

The government is keen to add to the momentum for a new global agreement on greenhouse emission reductions at Copenhagen and has committed to reduce carbon pollution by 25pc by 2020, if the world agrees to an ambitious global deal.

But the lack of major design changes will trigger a backlash when the Bill reaches the Senate, with the Liberals, Nationals, Greens and independents vowing to vote against it.

The situation has some commentators speculating on the likelihood of a double dissolution, forcing Labor to an early election on the issue of emissions trading.

The Opposition and numerous farm and food industry lobby groups say the scheme is still "deeply flawed" and the legislation needs to be completely re-worked, not rushed through parliament.

* Extract from a full report in Stock Journal, May 7 issue.