Prime Minister Julia Gillard’s government’s climate change policies revolve around the claim that “putting a price on carbon” is the key to cutting greenhouse gas emissions such as carbon dioxide. The CO2 released by burning coal in power stations and other industrial processes accounts for almost half the nation’s emissions. Brown coal is the worst offender – its emissions are 50 per cent higher than those of black coal. This is why Gillard promises to outlaw the construction of any new brown coal-fired generators. Meanwhile, her government is proceeding on the premise that putting a price on a permit to emit CO2 will lead to the closure of most coal-fired stations. So it offered over $5 billion in compensation to big emitting generators. Loy Yang A is due to get about $225 million over the next five years. The government is also putting the largest chunk of its “clean energy” development money – over $2.1 billion – into carbon capture and storage (CCS) projects for power stations. It now appears that large stations such as Loy Yang should have no trouble surviving without CCS or handouts.