The Bill includes an interim target to cut emissions by 20% by 2020.

The Senate Environment and Public Works Committee voted 11 to 8 to support the America's Climate Security Act proposed by Republican Senator John Warner and Democrat Senator Joseph Lieberman in October, with supporters hoping the bill will now go before the Senate early next year.

If approved, about 85% of US industry would be subjected to caps on greenhouse emissions. Key sectors such as electricity generation, transportation and manufacturing would be part of the cap-and-trade scheme that would begin operating in 2012.

Yvo de Boer, executive secretary of the UN climate change convention secretariat hosting the current Bali talks, described the committee vote as "very encouraging".

But opponents of the bill, such as Republican Senator James Inhofe, claimed it will damage the US economy by raising energy prices and putting the country at a trade disadvantage to fast-growing developing nations.