Page 11 - AsiaElec Week 13 2022

AsiaElec SUBSIDIES AsiaElec

Australia to pay A$11.6 bn for

fossil fuel subsidies in 2021-22

AUSTRALIA AUSTRALIAN subsidies beneficial to the coun- territory subsidies declined that year, the Federal
try’s fossil fuel industry will amount to A$11.6 government boosted it contribution by A$1.4
billion during the 2021-22 fiscal year, a new billion.
study published by The Australia Institute said By comparison, the study said the fossil fuel
earlier this week. subsidies are more that the Federal Government
Of this, subsidies provided from the Federal will spend on public schools – A$9.7 billion –
government total A$10.515 billion, 90% of the and more than the A$7.5 billion spent on the
total, which, including Federal, state and terri- Australian army for 2021-22.
torial subsidies, averages A$22,139 per minute, Rod Campbell, Research Director at the
according to the Institute’s findings. Institute said: “It is perverse that Australian
“The total value of fossil fuel subsidies com- governments continue to subsidize fossil fuel
mitted by Federal, state and territory budgets is production and consumption while communi-
A$55.3 billion – more than 10 times the balance ties across the country are bearing the costs of
of Australia’s Emergency Response Fund (A$4.8 disasters exacerbated by fossil fuel use.”
billion in December 2021), while A$11.6 billion “This is bad economics and even worse cli-
is 56 times the budget of the National Recovery mate policy,” he added in the statement. “Worse
and Resilience Agency,” the Institute said in a still, these subsidies are growing and show no
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-
industry despite growing global concern about fired recovery’ and more money for ever-failing
climate change and the environmental conse- technologies like carbon capture and storage,”
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 by burning coal, but to be the government’s Fuel Tax Credit Scheme,
this is changing as more renewable options come which amounts to an A$8 billion refund in fuel
online. Meanwhile, the government of Scott tax to a range of mining and agricultural fuel
Morrison has been promoting Australia’s rich consumers. Some A$770 million will go to the
reserves of natural gas as a transitional fuel. coal sector and A$976 million will be directed to
According to The Australia Institute, the the oil and gas sector.™
2021-22 subsidy budget is A$1.3 billion more
than that spent in 2020-21, and while state and

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