KEVIN Rudd threw a swift counter-punch when new Liberal leader Tony Abbott challenged him to an old-fashioned town hall stoush on climate change.

"I have a policy on climate change. It's called an emissions trading scheme," the Prime Minister said.

"I'd suggest that the current Leader of the Opposition calms down, puts in the hard yards and actually develops a policy on climate change."

Mr Rudd is preparing to fly to the Copenhagen climate summit, where the mood among participants was lifting ahead of today's opening.

News that US President Barack Obama will attend the crucial last day of the two-week summit has boosted hopes of a deal. Mr Obama will share the stage with Mr Rudd, who will act as an official "friend of the chair" to the Danes.

But Mr Abbott yesterday accused Mr Rudd of failing to explain his climate change policy to the people of Australia.

Days after snatching the top Liberal job and ditching an ETS deal with Labor, Mr Abbott dared the PM to a series of debates.

Bouyed by weekend byelection wins in Sydney and Melbourne, where the Liberals retained Peter Costello's seat of Higgins, Mr Abbott argued the public did not understand how Mr Rudd's "big tax" would work.

Read more at the Herald Sun