Australia will not be following New Zealand in getting an emissions trading scheme to fight global warming.
The Senate has voted the bill down by a vote of 41 to 33.
Two Liberal senators crossed the floor to vote with Labor, but Kevin Rudd needed seven to back his government to get the ETS through.
The defeat of the bill gives Mr Rudd an excuse to call an early election.
- NEWSTALK ZB
Australian ETS bill rejected
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