Australia plans to impose carbon tax on worst polluters

The Prime Minister, Julia Gillard, said emissions of carbon dioxide would be taxed at A $ 23 (£ 15) per tonne from next year.

The system will cover 500 companies that are responsible for most of the pollution.

Australia is one of the worst emitters in the world greenhouse gas emissions per capita.

The country relies on coal for 80% of its electricity production, and is a major exporter of coal.

The energy industry and the political opposition mounted a noisy campaign against a carbon tax, with demonstrations in all major cities in Australia in March.

Critics argue a withdrawal would harm economic competitiveness.

Polls show that about 60% of voters against the policy.

The government hopes to win by spending some of the funds raised by the carbon tax to compensate households for higher energy bills.

He is promising tax cuts for households with low and middle-income and state pension has increased and social assistance.

Motorists should be exempt from the carbon tax, except for heavy trucks. Agriculture will also be exempt.

"As a nation, we must put a price on carbon and create a clean energy future," says Gillard a news conference in Canberra.

"Australians want to do the right thing by the environment."