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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

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

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

CEF welcomes and applauds the politically courageous announcement by the Minns government in NSW today that it will increase the state’s coal royalties to generate a total of $2.7 billion for NSW over four years from 2024. Read more

Hunter communities undergoing unprecedented social and economic upheaval due to the clean energy transition would be the main beneficiaries of a progressive coal royalty system, Tim Buckley argued. The NSW government is investigating increasing mining royalties as part of an effort to boost the state’s bottom line when the temporary cap on coal prices implemented to curb soaring electricity prices expires. This could involve the introduction of progressive royalties, which would require coal companies to pay more as the coal price increases. Read more

Tim Buckley writes that it’s about time NSW reflected QLD’s progressive coal royalty regime which has just delivered a stunning dividend to the people of the state. Read more

Tim Buckley comments on the PRRT changes in the budget: “This looks very pedestrian relative to the LNG export industry’s windfall war-profiteering and oversized contribution to Australian domestic energy price hyperinflation. The far too modest PRRT reforms in this budget are a missed opportunity to deliver a substantial social dividend to the Australian people, limiting the government’s capacity to fund critically urgent social and energy transition programs, and undercutting the government’s claims to fiscal balance and responsibility.” Read more

Tim Buckley: “$4 billion in new funding to make Australia a renewable energy superpower, takes total funding to $40 billion including the previously announced programs,” but this is well below the cumulative $100 billion of public capital Climate Energy Finance considers is required to crowd-in $200-300 billion of private capital investment to position Australia as a global leader in energy transition and ensure our energy security and independence.” Read more

Our detailed Federal Budget 2023 wrap: we find that overall it’s sensible and measured, with serious attention to fiscal repair and capacity building. The energy bill relief is essential, there is strong decarbonisation progress – including the Net Zero Authority, $2bn for green hydrogen and home and business electrification packages – but more funding is needed to supercharge the transition. The marginal reforms to the PRRT are a case of serious policy underreach, and the lack of attention to corporate tax and diesel rebate reform are disappointing. Read more