Australian Prime Minister Tony Abbott Speaks During The Launch Of A Student Mobility Program
Australian Prime Minister Tony Abbott speaks during the launch of a student mobility program at a university in Mumbai September 4, 2014. Reuters

Australian Prime Minister Tony Abbott's Direct Action plan is slated to pass the Senate after the government won the support of the Palmer United Party, or PUP, and other crossbench senators after making concessions.

In an ABC report, PUP leader Clive Palmer has reached an agreement from the Abbott government to salvage the Climate Change Authority. The climate organisation will be tasked to conduct a review of PUP's plan to legislate the emissions trading scheme, or ETS, at zero rate.

Environment Minister Greg Hunt said the government was willing to listen to all parties and make changes, if necessary, to pass the Direct Action Plan. Other supporters of the Direct Action Plan were Victorian senators Ricky Muir and John Madigan and South Australian senator Nick Xenophon.

When Hunt made the announcement in the Senate, he was joined by Palmer and Climate Change Authority chairman Bernie Fraser. The environment minister declared it was a "tremendous outcome" for the government as one of Mr Abbott's signature policies has finally become a reality. He told ABC the plan would generate $36 billion savings for taxpayers.

According to Palmer, the PUP has insisted on keeping the idea of an ETS. Palmer believes Australia must have an ETS once trading partners will have one, too. Palmer said if Australia will not consider one, the country will have to shoulder a tariff for all export products headed to those with ETS.

Under the Direct Action Plan, carbon polluters will have to be paid to reduce emissions that the government has estimated to cost more than $2.5 billion in four years. Last June, Palmer had called the Direct Action policy as a waste of money and reiterated his party will back an ETS.

Labour party leader Bill Shorten had accused Mr Abbott of selling his soul to Palmer and warned "Australia will pay the price." Shorten believes the concessions would send Australia backwards. Reports said Greens leader Christine Milne criticised Mr Abbott's climate policy as "embarrassing."

Meanwhile, Herald Sun reports Mr Abbott had welcomed the passage of the Direct Action policy but said he was disappointed Labour refused to engage in constructive talks about the climate change policy. He told reporters it was Labour who had "created" the problems he was facing, and the party tries to come up with solutions.