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Every year, Australian taxpayers fund $9 billion of subsidies(1) to fossil fuel companies. Most of these subsidies lead to more greenhouse gas emissions.
Our taxes are handed over to fossil fuel companies to encourage the use of dirty fuels like coal, gas and oil.
In 2007, a report commissioned by Greenpeace found that the Australian government spends 28 times more money encouraging fossil fuel use than investing in clean solutions like renewable energy and energy efficiency.
Total government spending on fossil fuels is a whopping $9 billion. The federal government spends $7.8 billion of this. This amount includes grants, schemes, tax breaks and one-off handouts that make it easier to produce fossil fuels.
The fossil fuel industry is already a massively profitable industry. It certainly doesn’t need our taxes. And for years it has influenced government decision-making on energy and resources.
It’s hard to justify many of the government handouts to fossil fuels. The federal government spends more than $300 million of our taxes each year giving the coal industry cheap diesel fuel… Coal is the dirtiest of all fossil fuels… We should punish coal production by taxing carbon, not give the coal industry a tax break.
What would happen if the government took that $300 million and gave it to the renewable energy industry instead?… It would effectively double the amount of spending on renewables… and would give a major boost to the industry that will help us avoid dangerous climate change... What a great idea!
The new Rudd government has committed to acting on climate change. The government’s first budget in May will be a major test of this commitment. They could allocate taxpayers’ money to create a thriving renewable energy industry in Australia.
Greenpeace calls on the government to:
(1) Subsidies: Financial assistance paid, usually by the government, to keep prices below what they would be in a free market or to support industry production.
Our taxes are handed over to fossil fuel companies to encourage the use of dirty fuels like coal, gas and oil.
So, while most Australians want to stop climate change, our taxes are paying to increase climate change.
In 2007, a report commissioned by Greenpeace found that the Australian government spends 28 times more money encouraging fossil fuel use than investing in clean solutions like renewable energy and energy efficiency.
How much taxpayer money are we talking?
Total government spending on fossil fuels is a whopping $9 billion. The federal government spends $7.8 billion of this. This amount includes grants, schemes, tax breaks and one-off handouts that make it easier to produce fossil fuels.
The fossil fuel industry is already a massively profitable industry. It certainly doesn’t need our taxes. And for years it has influenced government decision-making on energy and resources.
Handouts hard to justify
It’s hard to justify many of the government handouts to fossil fuels. The federal government spends more than $300 million of our taxes each year giving the coal industry cheap diesel fuel… Coal is the dirtiest of all fossil fuels… We should punish coal production by taxing carbon, not give the coal industry a tax break.
What would happen if the government took that $300 million and gave it to the renewable energy industry instead?… It would effectively double the amount of spending on renewables… and would give a major boost to the industry that will help us avoid dangerous climate change... What a great idea!
Greenpeace calls for...
The new Rudd government has committed to acting on climate change. The government’s first budget in May will be a major test of this commitment. They could allocate taxpayers’ money to create a thriving renewable energy industry in Australia.
Greenpeace calls on the government to:
- Abolish the $308 million of our taxes given to coal companies each year to pay for their diesel. Redirect this money to promote renewable energy and energy efficiency.
- Launch a parliamentary inquiry to expose the full extent of taxpayer handouts to fossil fuels.
What you can do
(1) Subsidies: Financial assistance paid, usually by the government, to keep prices below what they would be in a free market or to support industry production.
