Australia comes clean after deal on carbon emissions cap

Worst offending companies will have to pay tax penalty from next year

Sydney

A A A

Australia, one of the world's worst per capita carbon emitters, yesterday passed landmark laws to introduce a tax on polluting industries, capping a period of unprecedented political turmoil that toppled a prime minister and an opposition leader.

The vote in the Senate, the parliamentary upper house, makes Australia only the second country outside the European Union to embrace a nationwide carbon-capping scheme. Advocates of climate change action hope it will give new impetus to calls for a global agreement at next month's UN talks in Durban.

The tax of A$23 (£15) per tonne of carbon emitted is to be levied on the 500 biggest polluters from July. Opposed by conservative parties and coal-reliant industries, it is also deeply unpopular with voters, who fear higher electricity bills.

Labor won the 2007 election by a landslide after promising to take decisive action on climate change. However, after the prime minister, Kevin Rudd, shelved plans to introduce an emissions trading scheme, he was ousted by his own party last year and replaced by his deputy, Julia Gillard.

Ms Gillard promised at the 2010 election that she would not introduce a carbon tax. However, with Labor failing to secure a majority, she was forced to court one Green MP and three independents. That left with her a majority of just one – and the price for Green support was a carbon tax.

Following her volte-face, some critics dubbed her "Juliar", and she was vilified by anti-carbon tax protesters in Canberra, who waved placards that demanded "Ditch the witch". Yesterday Ms Gillard hailed the Senate vote as "a major milestone in Australia's efforts to cut carbon pollution", noting that it followed "a quarter of a century of scientific warnings, 37 parliamentary inquiries and years of bitter debate and division".

Although Australia is responsible for only 1.5 per cent of global emissions, it uses coal to generate most of its electricity. The economy is also heavily dependent on mining and other energy-intensive industries. In the developed world, Australia is considered one of the countries most vulnerable to climate change. Droughts, like the one that crippled the southern half of the country until recently, are predicted to become more common, as are extreme weather events, like the floods and cyclones which hit Queensland earlier this year.

Australia's introduction of a carbon tax, which will be replaced by an emissions trading scheme from 2015, is being watched by other governments with similar plans. A scheme in California is due to start in 2013, while China and South Korea are devising carbon trading programmes.

Domestic critics claim the tax will make Australian businesses uncompetitive, threaten jobs and raise living costs. The opposition leader, Tony Abbott, has sworn a "blood oath" to repeal it if he becomes prime minister. The next election is not due until 2013, but he could take power earlier if a death or resignation forces a by-election in a Labor-held seat.

Sport
Raheem Sterling and Luis Suarez celebrate during Liverpool's game with Norwich
sport Another hurdle is out of the way for Brendan Rodgers' side
Sport
Luis Suarez celebrates after scoring in Liverpool's 3-2 win over Norwich
Football Vine shows Suarez writhing in pain before launching counter attack
Arts & Entertainment
The original design with Charles' face clearly visible, which is on display around the capital
arts + ents The ad shows Prince Charles attired for his coronation in a crown and fur mantle with his mouth covered by a criss-cross of white duct tape
Sport
Steven Gerrard had to be talked into adopting a deeper role by his manager, Brendan Rodgers
sport LIVEFollow the latest news and scores from today's Premier League as Liverpool make a blistering start against Norwich
VIDEO
Have you tried new the Independent Digital Edition iPad app?
News
People White House officials refuse to make comment on 275,000 signatures that want Justin Bieber's US visa revoked
News
Sir Cliff Richard is to release his hundredth album at age 72
PEOPLESir Cliff Richard has used a candid appearance on an Australian talk show to address long-running speculation about his sexuality

Sport
Lukas Podolski celebrates one of his two goals in Arsenal's win over Hull

Arsenal strengthened their grip on a top-four finish with a straightforward 3-0 win over Hull City.

Arts & Entertainment
Quentin Tarantino, director
arts + ents Samuel L Jackson and Michael Madsen have taken part in a reading of Quentin Tarantino’s axed follow-up to Django Unchained.
News
The speeding train nearly hit this US politican during a lecture on rail safety
news As the saying goes, you have to practice what you preach
Sport
Mercedes Formula One driver Lewis Hamilton of Britain (front) drives ahead of Red Bull Formula One driver Daniel Ricciardo of Australia during the Chinese F1 Grand Prix at the Shanghai International circuit
sport Hamilton captured his third straight Formula One race with ease on Sunday, leading from start to finish to win the Chinese Grand Prix

Arts & Entertainment
Billie Jean King, who won the women’s Wimbledon title in 1967, when the first colour pictures were broadcast
tv
News
Snow has no plans to step back or reduce his workload
mediaIt's 25 years since Jon Snow first presented Channel 4 News, and his drive shows no sign of diminishing
Life & Style
food + drinkWhat’s not to like?
Voices
Clock off: France has had a 35‑hour working week since 1999
voicesThere's no truth to a law banning work emails after 6pm, but that didn’t stop media hysteria
Arts & Entertainment
Maisie Williams of Game of Thrones now
tvMajor roles that grow with their child actors are helping them to steal the show on TV
Arts & Entertainment
Kingdom Tower
architecture
Life & Style
Lana Del Rey, Alexa Chung and Cara Delevingne each carry their signature bag
fashionMulberry's decision to go for the super-rich backfired dramatically
Have you tried new the Independent Digital Edition iPad app?
iJobs Job Widget
iJobs General

Apprentice IT Technician

£150.00 per week: QA Apprenticeships: This company is a company that specializ...

1st Line Technical Service Desk Analyst IT Apprentice

£153.75 per week: QA Apprenticeships: This company is an innovative outsourcin...

1st Line Helpdesk Engineer Apprentice

£150.00 per week: QA Apprenticeships: This company has been providing on site ...

Sales Associate Apprentice

£150.00 per week: QA Apprenticeships: We've been supplying best of breed peopl...

Day In a Page

How I brokered a peace deal with Robert Mugabe: Roy Agyemang reveals the delicate diplomacy needed to get Zimbabwe’s President to sit down with the BBC

How I brokered a peace deal with Robert Mugabe

Roy Agyemang reveals the delicate diplomacy needed to get Zimbabwe’s President to sit down with the BBC
Video of British Muslims dancing to Pharrell Williams's hit Happy attacked as 'sinful'

British Muslims's Happy video attacked as 'sinful'

The four-minute clip by Honesty Policy has had more than 300,000 hits on YouTube
Church of England-raised Michael Williams describes the unexpected joys in learning about his family's Jewish faith

Michael Williams: Do as I do, not as I pray

Church of England-raised Williams describes the unexpected joys in learning about his family's Jewish faith
A History of the First World War in 100 moments: A visit to the Front Line by the Prime Minister's wife

A History of the First World War in 100 moments

A visit to the Front Line by the Prime Minister's wife
Comedian Jenny Collier: 'Sexism I experienced on stand-up circuit should be extinct'

Jenny Collier: 'Sexism on stand-up circuit should be extinct'

The comedian's appearance at a show on the eve of International Women's Day was cancelled because they had "too many women" on the bill
Cannes Film Festival: Ken Loach and Mike Leigh to fight it out for the Palme d'Or

Cannes Film Festival

Ken Loach and Mike Leigh to fight it out for the Palme d'Or
The concept album makes surprise top ten return with neolithic opus from Jethro Tull's Ian Anderson

The concept album makes surprise top ten return

Neolithic opus from Jethro Tull's Ian Anderson is unexpected success
Lichen is the surprise new ingredient on fine-dining menus, thanks to our love of Scandinavian and Indian cuisines

Lichen is surprise new ingredient on fine-dining menus

Emily Jupp discovers how it can give a unique, smoky flavour to our cooking
10 best baking books

10 best baking books

Planning a spot of baking this bank holiday weekend? From old favourites to new releases, here’s ten cookbooks for you
Jury still out on Manchester City boss Manuel Pellegrini

Jury still out on Pellegrini

Draw with Sunderland raises questions over Manchester City manager's ability to motivate and unify his players
Ben Stokes: 'Punching lockers isn't way forward'

Ben Stokes: 'Punching lockers isn't way forward'

The all-rounder has been hailed as future star after Ashes debut but incident in Caribbean added to doubts about discipline. Jon Culley meets a man looking to control his emotions
Mark Johnston: First £1 million jackpot spurs him on

Mark Johnston: First £1 million jackpot spurs him on

The most prize money ever at an All-Weather race day is up for grabs at Lingfield on Friday, and the record-breaking trainer tells Jon Freeman how times have changed
Ricky Gervais: 'People are waiting for me to fail. If you think it's awful, then just don't watch it'

Ricky Gervais: 'People are waiting for me to fail'

As the second series of his divisive sitcom 'Derek' hits screens, the comedian tells James Rampton why he'll never bow to the critics who habitually circle his work
Mad Men series 7, TV review: The suits are still sharp, but Don Draper has lost his edge

Mad Men returns for a final fling

The suits are still sharp, but Don Draper has lost his edge
Google finds a lift into space will never get off the ground as there is no material strong enough for a cable from Earth into orbit

Google finds a lift into space will never get off the ground

Technology giant’s scientists say there is no material strong enough for a cable from Earth into orbit