Budget 08: time to stop subsidising climate change

Every year, at least $9 billion of taxpayer funded subsidies go to fossil fuels.

Most cause an increase in greenhouse gas emissions. $7.8 billion of the $9 billion energy and transport subsidies are controlled by the federal government. Renewable energy and energy efficiency measures receive only $232 million in federal subsidies.

Overwhelmingly, Australian taxpayers’ money is subsidising climate change, instead of supporting the solutions to it.

This is the legacy of 11 years of the Howard government. The first budget of the new ALP government provides an opportunity to begin the reform of the tax system and redirect subsidies so that they contribute to avoiding dangerous climate change.

This report outlines Greenpeace's recommendations for a comprehensive review of the taxation system and energy and transport subsidies to ensure that climate protection is integrated into public spending.