The United States has taken another key step towards introducing an emissions trading scheme, with the release of the Clean Energy Jobs and American Power Act.

The discussion draft of the Act, announced by United States Senators John Kerry and Barbara Boxer, incorporates an emissions trading scheme similar to Australia's proposed Carbon Pollution Reduction Scheme.

It follows the passage of the Waxman-Markey Bill - which committed the US to reduce carbon pollution through a cap-and-trade system and other complementary measures - through the US House of Representatives in June.

The two Bills are broadly similar, including measures for boosting renewable energy, achieving energy efficiency, and generating green jobs. The Kerry-Boxer Bill calls for the US to cut emissions by 20 per cent by 2020 compared with 2005 levels.

Australia has committed to reduce carbon pollution to 25 per cent below 2000 levels by 2020 in the context of an ambitious global agreement that puts the world on track to stabilising greenhouse gases in the atmosphere at 450 parts per million or lower.

Minister for Climate Change, Senator Penny Wong, said the release of the Senate draft Act was a significant step forward for the US and sent an important signal to the international community.

“It is encouraging to see the US push forward with this climate change legislation,” Senator Wong said.

“It is crucial, with fewer than 70 days until Copenhagen, that all countries do as much as they can to boost international negotiations.”

Senator Wong said progress on Australian policies to reduce carbon pollution was being closely monitored by the US.

“If Australia wants to see progress on climate change in the United States, the worst thing we can do is to delay progress at home.

“Passing the Carbon Pollution Reduction Scheme sends a clear signal that Australia not only has ambitious targets on the table, but also has a plan to meet them.”

“Passing the Carbon Pollution Reduction Scheme will also give the business community the certainty it needs to invest in Australia's low pollution future.”