Australia parliament passes divisive carbon tax

Oct. 13, 2011

Australia's lower house of parliament has narrowly passed a bill for a controversial carbon tax.

The legislation would force about 500 of the biggest polluters to pay for each tonne of carbon dioxide they emit.

The tax is central to the government's strategy to combat climate change, but the opposition says it will cause job losses and raise the cost of living.

Australia is the world's largest coal exporter and one of the biggest per capita greenhouse gas emitters.

"Today is a significant day for Australians and the Australians of the future who want to see a better environment," Prime Minister Julia Gillard said before the vote.

After her Clean Energy Bill 2011 was passed with 74 votes for and 72 against, she hugged colleagues and waved to supporters in the public galleries.

Along with a companion bill for A$300m ($298m; 191m) in assistance for the Australian steel industry, it is expected to pass the Senate with the help of the Greens next month.

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