Fossil fuel farce: If carbon is killing our planet, why are we giving it so much in subsidies?
Government subsidies to fossil fuel producers have risen, triggering calls for the Commonwealth to scrap the financial assistance.
Research from think tank The Australia Institute reveals subsidies to fossil fuel producers from federal and state governments have increased to $14.5 billion in the 2023/24 financial year.
Itās expected there will be a 31 per cent increase in subsidies in the current fiscal year, from the $11.1 billion handed out in 2022/23.
The rise has been driven by the federal governmentās fuel tax credits scheme, which provides credits for businesses that have bought fuel for their company.
The Australia Instituteās research director Rod Campbell said the increase in subsidies was undermining the governmentās stance on reducing emissions and the use of fossil fuels.
āBudgets are about choices. This research reveals Australian state and federal governments are budgeting for more fossil fuel use and more fossil fuel production, not less,ā he said.
āThe magnitude of these fossil fuel subsidies overshadows government claims about climate action. Our state and federal governments are failing to implement even the most basic climate policy ā cutting fossil fuel subsidies.ā
The report showed the total fossil fuel subsidies over the next four years would total $65 billion, or 16 times the size of the federal governmentās disaster ready fund.
Subsidies in the current financial year include $1.6 billion in aviation fuel concessions, an increase of 36 per cent due to Australians flying more, with the federal government also spending $113 million on upgrading coal railways.
Queensland was the jurisdiction with the highest level of subsidies at $1.6 billion.
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Mr Campbell said the report finding highlighted the need for the subsidies to be reduced to increase the budget bottom line.
āEliminating these subsidies would significantly increase government revenue to address climate issues while also reducing emissions,ā he said.
āIf governments collected this foregone revenue, it could instead look to address housing affordability and other cost-of-living pressures.ā
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