Australia introduces carbon tax

Sydney - Australia on Sunday introduced a controversial carbon tax in a bid to tackle climate change, with Prime Minister Julia Gillard hailing the move amid opposition warnings it will stifle industry.

The tax on corporate pollution, which drew thousands of protesters on to the streets of Sydney on Sunday, will mean some 350 entities will be liable to pay $23.5 for every tonne of carbon emissions they produce.

The government hopes the scheme will mean that by 2020, Australia's carbon pollution will be at least 159 million tons less per year than it would be otherwise - the equivalent, it says, of taking 45 million cars off the road.

The plan is to start with a fixed price and transition to a market-based emissions trading scheme after three years, similar to that adopted by the European Union.