Independent MP Tony Windsor has warned that he will not back a carbon price that "churns" revenue, and that some of the money raised from a carbon tax should be spent on research and development, soil projects and renewable energy, The Age reports.

Mr Windsor told the paper that the debate about pricing carbon and how to allocate funds raised from taxing carbon emissions – including the issues of industry and household compensation – had so far been about placating political pressures.

''If it is just a churn of money to keep people quiet, then I won't be interested in it,'' Mr Windsor said. 

''But if they [the government] are genuine about doing something that will actually address the problem, I'll genuinely look at it.''

The Independent MP's vote is crucial to Labor passing its proposed carbon pricing legislation. Mr Windsor is also a member of the government's multiparty climate change committee of Labor, Greens and independents. He told The Age yesterday that some carbon price revenue should be committed to storing carbon in soil, which he said would provide ''insurance'' if other countries failed to act on climate change.