CANBERRA (Reuters) - Australia's parliament rejected on Thursday a government plan for the world's most ambitious carbon emissions trade regime, bringing the nation closer to a snap election.
Conservative lawmakers holding the largest block of votes in the upper house Senate joined with Green and independent Senators to defeat the government's plans for a Carbon Pollution Reduction Scheme set to start on 1 July, 2011.
Under the scheme, about 1,000 of Australia's biggest polluting companies would have had to purchase carbon permits, covering 75 percent of national emissions.
If the Senate blocks or rejects the legislation a second time, after an interval of three months, it will hand Prime Minister Kevin Rudd a trigger for an early election.
(Reporting by Rob Taylor; Editing by Michael Perry)