All the cross-party senators, as well as the Opposition, have now said they will not pass the legislation in its current form, leaving the Government scrambling to secure the scheme's future.

Senator Fielding said yesterday that the scheme should be put back by at least six months: "We don't want to see jobs booted offshore. That would be crazy, especially in these economic times."

He was also concerned that it did not recognise voluntary action taken by households, such as recycling, or programs that allow people to pay more for their energy to come from renewable sources.

Yesterday the Senate approved two inquiries into the legislation. One was put forward by the Government.

The other was proposed by the Greens and the Coalition and will look at whether emissions trading is the most cost-effective way of reducing greenhouse gas emissions.

The argument about the composition of the inquiry's committee is a demonstration of how hard it will be for the Government to get its legislation through the upper house.

There is one spot on the committee for an independent.

Both the Independent Nick Xenophon and Senator Fielding believe they should have the position.

If they are unable to agree, the Senate will have to hold a formal vote on who should sit on the committee.

The Government says the trading scheme will create thousands of jobs in an expanding renewable energy sector.

It predicts jobs in that area will grow 30-fold by 2050.

But this does not seem to have persuaded Senator Fielding or Senator Xenophon, who worry about job losses as a result of the higher costs faced by industry.

The Greens and the Coalition said this week they would not vote for the scheme without significant amendments.