Calls grow for fossil fuel subsidy cuts

Age
Tuesday 18/3/2008 Page: 2

GREEN groups have called on Prime Minister Kevin Rudd to cut billions of dollars in taxpayer-funded subsidies to the fossil fuel industry. And it appears most Australians would be in favour. A Newspoll survey to be released by Greenpeace today shows 90% of respondents want the Federal Government to provide the renewable energy industry with the same or more in subsidies.

A report by the Australian Conservation Foundation, also to be released today, shows that the Australian Government invests nearly 50 times more in fossil fuels, such as coal, oil and gas, and uranium mining, as it does on renewable energy. The report, Responsible Public Investment in Australia, found that government controlled funds were investing $47 in fossil fuels and uranium for every dollar they invested in renewable energy.

The study of 36 federal, state and territory investment funds, controlling assets worth a combined $206 billion, found most did not consider environmental, social and governance risks in making their investment decisions. ACF executive director Don Henry said that while some governments, such as the ACT, were reviewing their investment practices, funds including the $60 billion Future Fund did not consider environmental factors.

"Government-controlled funds that do not manage environmental risks in their portfolios put at risk their financial returns and the world we will leave for our kids," he said. The ACF's call for a change of tack came as Greenpeace released a poll showing that 78% of Australians were unaware that fossil fuels received significantly more in subsidies than renewable energy. Of the 90% of people who wanted renewables to receive the same favourable treatment as fossil fuels, 84% said it should happen over the next 12 months.

Greenpeace energy campaigner Julien Vincent said renewable energy deserved a fair share of the $9 billion of taxpayer-funded subsidies that went to the fossil fuel industry each year. "The federal budget in May is a golden opportunity for the new Government to begin phasing out unnecessary and environmentally damaging handouts to fossil fuels, starting with the coal industry's $300 million diesel fuel discount." The budget will be a major test of Kevin Rudd's willingness to take real action on climate change and help develop Australia's renewable energy industry into a world leader."

Link www.acfonline.org.au