The Australian government has put plans for a flagship emissions trading scheme on hold until 2013 at the earliest.
The move comes after the scheme was rejected twice by the Senate, where Prime Minster Kevin Rudd's government does not have a majority.
Mr Rudd, who came to power promising tough climate action, blamed opposition obstruction and slow global progress on emissions cuts for the plan's delay.
Mr Rudd has said climate change is "the moral challenge of our generation"
Australia is one of the highest per capita carbon emitters in the world.
Australia has some of the highest per capita carbon emissions of developed nations.
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