AUSTRALIA may have shelved its Emissions Trading Scheme but the world's largest economy, the US, is moving towards establishing its own scheme.

Draft US laws to set up an ETS and tackle climate change will be made public later today and that could mean Australian exports face carbon tariffs.

President Barack Obama wants to cut greenhouse gas emissions by 17 per cent by 2020.

Progress towards a US scheme is in contrast to Australia where Prime Minister Kevin Rudd has backflipped on his pledge to start emissions trading this year.

It's believed the draft US laws will include an ETS to cover electricity generation and possibly industry and manufacturing.

The scheme may levy tariffs on countries that don't have a carbon price which could include Australia.