Australia's Senate has voted to repeal the carbon tax, a levy on the biggest polluters passed by the previous Labor government.
Prime Minister Tony Abbott, whose Liberal-National coalition beat Labor in an election last year, had made the repeal a central aim of his government.
Politicians have been locked in a fierce row about the tax for years.
Labor says it helps to combat climate change, but the Liberals claim it penalises legitimate businesses.
The Australian Senate voted by 39 to 32 votes to repeal the tax.
Introduced in July 2012, it charges the 348 highest polluters A$23 (£13; $22.60) for every tonne of greenhouse gases they produce.
'Bereft of policy'
Australia is the developed world's worst polluter per head of population. But critics, including Mr Abbott, said that the tax cost jobs and forced energy prices up.
There were widespread protests against the introduction of the tax in Australia and its repeal formed a major part of Mr Abbot's election manifesto.
Read more: http://www.bbc.co.uk/news/world-asia-28339663