The $15 per tonne carbon tax floor price will be dumped by the Gillard Government following the conclusion of a deal with the European Union that would link the economic bloc's carbon pricing scheme to that of Australia's.

In a press briefing held on Tuesday, Climate Change Minister Greg Combet announced that Australia will adopt the essential dynamics of the carbon reduction program presently in force in Europe, which means like the continent the country will not impose a floor price on the tax that by 2015-2016 will cost polluters $29 per tonne of emission.

"From July 1, 2015, Australia's carbon price will effectively be the same as that that operates in our second-largest trading bloc and effectively the same as that of 30 other countries and the same carbon price that will cover 530 million people," Mr Combet was reported by the Australian Financial Review (AFR) as saying.

A separate statement from European Commissioner for Climate Action Connie Hedegaard has indicated that the arrangement between the EU and Canberra was provisional but is ready for roll out over the next three years.

The deal is expected to be finalised by legislative amendments on the laws supporting the existence of the carbon tax, with Mr Combet confident that independent MPs allied with the Labor-led government and the Australian Greens will back the adjustments.

According to Business Spectator, Ms Hedegaard has projected that Australia and the EU bloc will come up with an agreement on carbon market registry arrangements by mid-part of 2013, with the likely finalisation of the two programs' linkage to occur on July 2018.

"These arrangements (will also) provide Australian businesses with access to a larger market for cost-effective emission reductions and provide European market participants with enhanced business opportunities," Mr Combet also disclosed.

Businesses from both economies will then "be allowed to use carbon units from the Australian emissions trading scheme or the European Union Emissions Trading System for compliance under either system,"

And to maximise the benefit, Australian businesses can start purchasing permits from the European Market, which can be post-dated starting July 1 2015, Mr Combet explained.

The carbon tax revamp will not impact on the 2015-2016 budget as Mr Combet insisted that the government is firm on what were presented by the Treasury earlier in May.

"It is three years away and the Treasury modelling is something that we stand by," the climate minister stressed.

That position also means that present rates of household compensations given out by federal authorities will not take a hit.

"Linking the Australian and European Union system reaffirms that carbon markets are the prime vehicle for tackling climate change and the most efficient means of achieving emissions reductions," Mr Combet asserted too.

The changes would further strengthen the carbon tax laws, which the government said would make it hard for the Coalition to kill the measures as consistently vowed by Opposition Leader Tony Abbott should he becomes Prime Minister on 2013.

But the biggest winner to emerge on the carbon tax tweaks is Australian businesses competing with global firms, which have lobbying on Canberra to do away with the floor price as it would put them in a disadvantaged position against companies with European carbon clearances.

Mr Combet has expressed confidence that prevailing carbon pricing by 2015 should deliver the projected benefits outlined by the Treasury, arguing that the modelling was both accurate and conservative.

"How about we have a bit of trust in that than some ridiculous allegation made by Tony Abbott about the impact of carbon pricing," he pointed out.