Page 15 - AsiaElec Week 14 2022

AsiaElec RENEWABLES AsiaElec

Australia said to pay AUD11.6bn for

fossil fuel subsidies in 2021-22

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

Week 14 06•April•2022 www. NEWSBASE .com P15