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Prime Minister John Howard may not have won the debate last night, but arguably he did outmanoeuvre Kevin Rudd by announcing a new climate change development fund. Mr. Howard pledged to invest in clean energy technologies and ease the pressure off low-income earners, using the revenue gathered from the sale of the carbon permits. These permits form the basis of an emissions trading scheme, whereby polluters are forced to pay for the privilege of emitting greenhouse gases. According to the Prime Minister, the bulk of the money will go back to households most affected by higher energy costs once a carbon price is set. Dr. Mark Diesendorf, from the Institute of Environmental Studies at the University of NSW, welcomed the John Howard’s announcement, but does have some reservations.

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