Australia axed a divisive carbon tax after years of vexed political debate, handing the government a key victory after it went to the polls last year vowing the levy would go.
Australian Prime Minister Kevin Rudd Tuesday announced the country's divisive fixed-price carbon tax will be scrapped a year ahead of schedule in favour of a market-driven emissions trading scheme.
China will not pay for CO2 emissions by its airlines on flights within Europe, a top civil aviation official reportedly said after the European Commission warned eight Chinese firms face fines for nonpayment.
Australia's new carbon tax received a cool reception in a poll Monday, showing Prime Minister Julia Gillard's mechanism to tackle climate change is unpopular and her government on track to lose office.