Economist Frank Jotzo, director of Australian National University's Centre for Climate Economics & Policy, said the Chinese schemes worked on the same principle as the Australian model, which would become a trading scheme in July 2015 were it to survive. ''By introducing carbon pricing, China is doing exactly what the IMF, OECD and World Bank are urging governments to do - not just to cut emissions, but ultimately also as an income source for national budget,'' Professor Jotzo said. ''Australia might earn itself the questionable distinction of being the first country to abolish a major carbon pricing scheme. We'll be going against the trend if we do.'' It comes as Prime Minister Tony Abbott attempts to push through legislation to repeal the Australian carbon price. The bill passed the lower house last month. With Labor and the Greens opposed, the repeal push is expected to fail until the balance of power in the Senate shifts to mainly right-leaning and climate-sceptic minor parties and independents on July 1.

Mr Abbott said in Brisbane on Sunday: ''The people voted on the carbon tax in the general election. The Labor Party has not yet got the message.'' China has a target of cutting its emissions by up to 45 per cent per unit of GDP by 2020, but is yet to commit to an outright cut in emissions. A recent report by the Global Carbon Project found its emissions rose 6 per cent last year, following a 10 per cent rise the year before. It was responsible for nearly three-quarters of the global 2 per cent rise in emissions last year. But Professor Jotzo said China had started preparing a national emissions trading scheme to follow seven pilot schemes, and was likely to also introduce a carbon tax, albeit at a low rate. Environment Minister Greg Hunt said in September that China's ''growing commitment to action'' was the most heartening development in tackling climate change. As in the Australian system, the Chinese pilot schemes require businesses to hand in a carbon permit for every tonne of carbon dioxide emitted. Unlike Canberra's model, they are not starting with a fixed price, or ''carbon tax'', and most permits are initially being given to business free.