Aus Parliament rejects carbon emission scheme

Canberra: Australia`s Parliament rejected on Thursday a government plan for the world`s most ambitious carbon emissions trade regime, bringing the nation closer to a snap election.

Conservative lawmakers holding the largest block of votes in the Upper House Senate joined with Green and independent Senators to defeat the government`s plans for a Carbon Pollution Reduction Scheme set to start on 1 July, 2011.

Under the scheme, about 1,000 of Australia`s biggest polluting companies would have had to purchase carbon permits, covering 75 percent of national emissions.

If the Senate blocks or rejects the legislation a second time, after an interval of three months, it will hand Prime Minister Kevin Rudd a trigger for an early election.

Bureau Report