The Senate has voted today to block legislation that would repeal the carbon tax.
The Labor Party and the Greens combined to vote against the repeal laws 33 votes to 29.
Opposition climate change spokesman Mark Butler said the Coalition’s alternative policy, Direct Action, will be ineffective and expensive.
"Without a credible alternative, Labor cannot support the abolition of the existing clean energy policies," Butler said.
Environment Minister Greg Hunt said that he is confident that the new Senate in July will vote for repealing the tax.
The Coalition has already reintroduced the anti-carbon tax legislation to the lower house this morning, however if the next round in the Senate is unsuccessful, the issue will force a federal double dissolution election.
In December the Coalition unsuccessfully attempted to pass legislation through the Senate that would disband the $10 billion Clean Energy Finance Corporation (CEFC), which facilitates funding and investment commercialisation and deployment of renewable energy projects.
The Coalition’s Direct Action policy proposes to directly pay incentives to major polluters to get them to reduce emissions, and to use $3 billion for an emissions reduction fund that will pay businesses for emissions reduction projects.
The emissions reduction funds will be paid to businesses, which will have to compete with each other to undercut the cost per amount of emissions abatement.