The federal government will try to engage a new US administration to work with Australia to tackle climate change, Prime Minister Kevin Rudd says.
Comprehensive economic modelling released by Treasury today has painted a rosy picture of how emissions trading will affect the economy and households.
The modelling found the scheme would barely impact on economic growth and incomes, both of which would continue to grow.
Mr Rudd today said the government would act responsibly in implementing a scheme, and simultaneously try to "jag the rest of the international community into action".
"That's the hard bit," Mr Rudd told ABC Television.
"But we face an election very soon in the United States, both Republicans and Democrats have committed to action.
"One of our first challenges will be to engage the incoming American administration in working with us on this.
"If America is on board with concerted global action and the Europeans, and critically, the emerging economies China, India and elsewhere, we have a prospect - a prospect - of getting there."
Mr Rudd said the government still aimed to launch emissions trading in 2010, despite economic uncertainty generated by the global financial crisis.
"We'll be very practical about what sort of trajectory, what sort of pathway we achieve for business and for Australia from 2010 through to 2050," he said.
