Australia carbon plans foiled by right

Australia's Senate defeated the government's plan to implement a carbon pollution trading system to fight global warming yesterday, dashing hopes of setting an example for other nations at UN climate talks next week.

The scuttled proposal would have placed Australia alongside the EU in having in place a "cap-and-trade" system to cut greenhouse gas emissions. Yesterday's vote followed a tumultuous two-week debate during which the main opposition party, the conservative Liberals, at first agreed to support a version of the government's bill, then on Tuesday dramatically dumped its leader and switched sides after bitter divisions erupted within the party.

"Today the climate change extremists and deniers in the Liberal Party have stopped this nation from taking decisive action on climate change," Australia's Deputy Prime Minister Julia Gillard said.