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Australia said to pay AUD11.6bn for

fossil fuel subsidies in 2021-22

POLICY AUSTRALIAN subsidies beneficial to the more than that spent in 2020-21, and while state
country’s fossil fuel industry will amount to and territory subsidies declined that year, the
AUD11.6bn ($8.7bn) during the 2021-22 fis- federal government boosted its contribution by
cal year, a new study published by the Australia AUD1.4bn ($1.0bn).
Institute said this week. Of this, subsidies pro- By comparison, the study said the fossil fuel
vided from the federal government amount to subsidies are more that the federal govern-
AUD10.515bn ($7.879mn), 90% of the total, ment will spend on public schools – AUD9.7bn
which, including federal, state and territorial ($7.3bn) – and more than the AUD7.5bn
subsidies, averages AUD22,139 ($16,588) per ($5.6bn) spent on the Australian army for
minute, according to the institute’s findings. 2021-22. The government
“The total value of fossil fuel subsidies com- “It is perverse that Australian governments
mitted by federal, state and territory budgets is continue to subsidise fossil fuel production and has received
AUD55.3bn [$41.4bn] – more than 10 times the consumption while communities across the
balance of Australia’s Emergency Response Fund country are bearing the costs of disasters exac- criticism for
(AUD4.8bn [$3.6bn] in December 2021), while erbated by fossil fuel use,” said the institute’s
AUD11.6bn [$8.7bn] is 56 times the budget of research director, Rod Campbell. its continuing
the National Recovery and Resilience Agency,” “This is bad economics and even worse cli- support of
the institute said in a press release. mate policy,” he added in the statement. “Worse
The government has received criticism for still, these subsidies are growing and show no Australia’s fossil
its continuing support of Australia’s fossil fuel sign of slowing down.”
industry despite mounting global concern “The big increases are not hidden, but are fuel industry.
about climate change and the environmental central government policies such as the ‘gas-fired
consequences that numerous communities recovery’ and more money for ever-failing tech-
in Australia are experiencing. The country nologies like carbon capture and storage [CCS],”
gets about two-thirds of its electricity through Campbell said.
burning coal, but this is changing as more The largest source of the subsidies continues
renewable options come online. Meanwhile, to be the government’s Fuel Tax Credit Scheme,
the federal government has been promoting which amounts to an AUD8bn ($6bn) refund
Australia’s rich reserves of natural gas as a tran- in fuel tax to a range of mining and agricultural
sitional fuel. fuel consumers. Some AUD770mn will go to
According to the Australia Institute, the the coal sector and AUD976mn ($731mn) will
2021-22 subsidy budget is AUD1.3bn ($974mn) be directed to the oil and gas sector.™

P12 www. NEWSBASE .com Week 13 01•April•2022