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The Garnaut Report is the Rudd government’s answer to climate change. The main recommendation of the report is an Emissions Trading Scheme (ETS) that will allow companies to purchase carbon emission permits at auction. The report proposes that half the proceeds from the sale of permits are given to households, 30 per cent to business, and the remaining 20 per cent to the research and development of new technologies. Can the ETS stem the tide of climate change?

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