Direct Action gets the final nod

The Abbott government's Direct Action scheme has finally cleared parliament.

The coalition in October agreed to a series of changes to the scheme in the Senate in order for it to replace Labor's carbon tax.

Those changes passed the lower house on Monday.

As part of a deal with independent senator Nick Xenophon, the government agreed to fine big companies if their emissions continue to rise.

It also agreed to the Palmer United Party's demand to retain the Climate Change Authority and hand it the task of carrying out an investigation into a dormant emissions trading scheme.

The 18-month long investigation already has been the subject of criticism because the government has ruled out an ETS despite agreeing to investigate its merits.