President Barack Obama's plan to clean up American industry gets its first major test later today as the House of Representatives votes to restrict greenhouse gas pollution and introduce European-style carbon trading.

The Waxman-Markey American Clean Energy Act, if voted through, would not only transform the way US industry does business, it could also put the London-based Climate Exchange at the forefront of the global carbon trading market.

The bill, which carries the names of two Democrat Congressman, outlines President Obama's green energy vision. This is aimed at encouraging alternative technologies in the US and implementing ceilings on the emissions from the country's power stations, industry and vehicles by 2020.

While Waxman-Markey has run into considerable opposition, the word from Capitol Hill is that Obama would not be attempting to get the legislation past the sceptics unless he believes he will win the vote.

The plan closely apes the European system of "cap and trade" in which polluters have to obtain carbon dioxide permits but are limited to the amount of emissions they produce.

If the polluter becomes cleaner or more efficient and emits less carbon, it can trade its carbon permits with the idea that the polluter uses the money from such trading to invest in greener technologies.

The carbon trading market this side of the Atlantic has seen a boom for the European Climate Exchange, the Bishopsgate-based bourse run by Aim-listed Climate Exchange.

Climate Exchange, 4.8% owned by ICE, the international commodities exchange group, already operates the nascent Chicago Climate Exchange in the US.

City research house Fox-Pitt Kelton says the Waxman-Markey Act has the power to transform Climate Exchange's fortunes.

"The company sees the US market potentially being two to three times the size of the European market," it said in a recent research note.

Though loss making since launch in 2005, Climate Exchange is expected to break into the black this year as revenues from the European Climate Exchange more than double .