The Australian Senate voted to get rid of the price on carbon by 39 to 32, making Australia the first country to repeal such a policy.

Introduced in July 2012, the carbon tax charges the 348 biggest polluters A$23 ($21.50) for every tonne of greenhouse gases they produce.

Prime Minister Tony Abbott now says he plans to replace it with A$2.55bn taxpayer-funded plan under which industries will be paid to reduce emissions and use cleaner energy.

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