Media

Fossil fuel subsidies in Australia reached $11 billion in 2022-23, extending decades of direct capital transfers and tax concessions to some of Australia’s most polluting industries and making Australia one of the G20’s largest providers of subsidies for fossil fuels. The scale of the impact to our economy is enormous. The FTCS is the largest fossil fuel subsidy in Australia and is the 18th largest government expense program in 2023-24. The federal government estimates the FTCS will cost over $9.5 billion in tax concessions in 2023-24 alone, with the credits largely going to Australia’s bulk commodity and fossil fuel mining firms. Read more

A group of organisations is calling for a $100 billion investment in clean energy technology over the next 10 years, to counter the enormous spending already committed internationally.They say that incentives worth $100 billion would deliver at least $300 billion in annual clean export revenue by 2035 and 700,000 direct jobs, mainly in rural and regional Australia. The funding pot would be to support new industries in anything from green iron and steel to advanced manufacturing such as solar and wind componentry, to transmission infrastructure and clean energy exports. “A $100 billion package will help re-industrialise the nation,” said Climate Energy Finance founder Tim Buckley. Read more

Tim Buckley says we have a ‘once-in-a-generation’ chance to pivot our economy towards industries of the future. Australia imports 29 billion litres of high emissions, inflationary diesel each year, heavily subsidised by the Federal Government, critically undermining Australia’s climate and green manufacturing ambitions. A cap to the fuel rebate scheme would create a tailwind for electrifying Australia’s mining fleet, deploying the best technology to become a world leader in embedded decarbonisation. Read more

Australia could kick start the electric truck era by curbing off-road diesel rebates that go to the mining sector, economic modelling shows. A report to be released by independent think tank Climate Energy Finance on Monday calls for the diesel fuel tax credit (FTC) for the mining sector to be capped at $50 million a year per company.”This is not a revenue grab, we’re trying to encourage them to do the right thing,” co-author Tim Buckley told AAP. He said Australia must deal with the “hyper-inflationary” dependence on imported high-emissions diesel and build onshore manufacturing. Australia needs its biggest companies to be “leaders not laggards” on electrification and emissions reduction, he said. “This is all about them having a policy tailwind to back their own strategy of decarbonisation,” he said. Read more

Climate analyst Tim Buckley said the EPA “courageously” attempted to tackle the climate challenge when there was a policy vacuum at a national level. He said withdrawal of the guidelines meant there had been four years of inaction with the federal government only just implementing an effective safeguard mechanism, when in reality the original policy wouldn’t have cost the industry much at all to comply with. “The burden on the industry is nothing compared to the profits the industry makes,” Mr Buckley said. Read more

Tim Buckley has a menu of “no regrets” investments in renewables that NSW Energy Minister Sharpe and the Treasurer Mookhey should consider regardless of Eraring. They include: backing with front-loaded finance and accelerated planning approvals 1200MW of utility scale renewables and 1200MW of distributed (customer-owned) renewables each year until 2030; accelerating the rollout of rooftop solar and batteries in public housing and schools across NSW; accelerating the frequency and ambition of Renewable Energy Zones auctions; cajoling NSW transmission and distribution companies to use tech company Neara to identify existing spare grid capacity for new renewables to be plugged in (it reckons there’s room for 10,000MW); and accelerating electrification for rentals and behind-the-meter batteries. Read more

While the usual suspects, including the National Party, railed against the move, it has been welcomed by many in the clean energy industries, including think tank Climate Energy Finance (CEF). Its Director, Tim Buckley, said: “CEF prefers the Queensland government’s progressive royalty approach, which only applies in full less than once a decade or or even more infrequently, at times of coal export sector superprofits, but an increased share in NSW to guarantee a fairer return to public coffers is definitely a good start.” Read more

The director of the public interest think tank Climate Energy Finance, Tim Buckley, described the move as “politically courageous”. The think tank had been advocating for the introduction of a progressive coal royalty scheme, similar to what has been introduced in Queensland. Read more

Climate Energy Finance founder Tim Buckley said the northern state ran the preferred model, which delivered major windfalls at times of high prices while easing pressure on producers when prices were low. “(We have) long been calling for a progressive NSW coal royalty scheme to generate revenues for alleviation of cost-of-living pressures and energy poverty in the state, following the leadership of Queensland,” he said. Read more

The New South Wales (NSW) State Government has entered talks with Origin Energy to discuss extending the life of Australia’s largest coal-fired power station. The move comes after the nation’s grid operator flagged concerns of energy shortfalls over the next ten years as it retires 62% of its coal power fleet. Tim Buckley, director at the think tank Climate Energy Finance, was critical of the proposals for the Eraring plant stating: “The idea that a 50-year-old plant can just be extended without serious risk of catastrophic failure is ridiculous.” Read more

Climate Energy Finance director Tim Buckley prefers Queensland’s progressive approach over the flat NSW tax as it allows the government to participate in periods of super profits. “But an increased share in NSW to guarantee a fairer return to public coffers is definitely a good start,” he said. “The previous flat 6-8 per cent coal export royalty rate in NSW was long overdue for review and uplift. “It is imperative that the revenue generated is not used to subsidise the continued operation of coal power in the state, including the end-of-life Eraring coal power station due for closure in 2025, but applied to reduce cost of living pressures and support essential services, as per the government’s commitments made today.” Read more

Climate Energy Finance founder Tim Buckley said the northern state ran the preferred model, which delivered major windfalls at times of high prices while easing pressure on producers when prices were low. “(We have) long been calling for a progressive NSW coal royalty scheme to generate revenues for alleviation of cost-of-living pressures and energy poverty in the state, following the leadership of Queensland,” he said. Read more