PUBLIC MONEY PROPPING UP FOSSIL FUELS

The Australian Government spends billions on programs that encourage more coal, gas and oil to be extracted and burned. Market Forces estimates that tax-based fossil fuel subsidies cost Australian taxpayers $12 billion every year.

The Government itself states $7.7 billion was invested in Australia’s renewable energy sector in 2020. Imagine if the fossil fuel industry’s annual subsidies of $12 billion were redirected to renewable energy.

The International Monetary Fund estimates that, on a global basis, removing global fossil fuel subsidies and taxing fossil fuels appropriately could lead to a decline in fossil-fuel related carbon emissions by over 20%.

Australia’s subsidies to the fossil fuel industry come in three forms:

  • tax-based subsidies, involving tax breaks to the producers and users of coal, oil and gas
  • direct handouts, where state and federal governments give out large sums of cash to help fossil fuel companies expand their operations
  • public financing, where our governments loan public money to big companies that can’t get sufficient funding from the private sector

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Visit the links below to find out how the Australian government is using your money to prop up dirty fossil fuels: