Green groups seek reversal of fuel subsidies

AAP Newswire
18/03/2008 National

CANBERRA, March 18 AAP - Environment groups have urged governments to spend more taxpayers' money on renewable energy than the fossil fuel industry. Greenpeace today released an opinion poll which found a majority of Australians think renewables should receive more subsidies than fossil fuels like coal. The Australian Conservation Foundation (ACF) issued a report showing federal and state governments are investing nearly 50 times as much on fossil fuels and uranium mining as they do on technologies like solar and wind power.

Both groups say the vast difference in funding contradicts governments' ambitions to cut greenhouse gas emissions. The Newspoll commissioned by Greenpeace found 60 per cent of respondents thought renewables should get the most funding. Another 30 per cent thought the subsidies should be equal for both sectors. Fifty-six per cent said more money should be ploughed into renewables immediately, and 28 per cent said over the next 12 months. The poll also showed that only 29 per cent knew fossil fuels received higher funding.

"The legacy of the Howard government is an abuse of taxpayers' money and out of step with public opinion," Greenpeace climate and energy campaigner Julien (Julien) Vincent said. "Rather than adding to their profits, we should be penalising the use of fossil fuels and putting public money into renewable energy solutions." Greenpeace is seeking signatures for a petition asking federal Treasurer Wayne Swan to phase out subsidies for fossil fuel companies.

The ACF report, Responsible Public Investment in Australia, says government-controlled funds are putting $47 into fossil fuels and uranium for every dollar they invest in renewable energy. "With so much emphasis on climate change from federal, state and territory governments, many people would be shocked," ACF executive director Don Henry said.

"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." Separately, a group of eminent climate scientists have called on the federal government to stabilise national emissions in two years' time. The report by the Australian Climate Group released today warns the extent of climate change is likely to be at the extreme end of predictions by the international scientific community.

The group was first convened by WWF-Australia and insurer IAG in 2004. "Any delay in achieving significant emission reductions could lead to a major disruptive shock to both our economy and our whole way of life," IAG chief risk officer Tony Coleman said. "If the extent of climate change continues to emerge faster than anticipated, Australia will quickly run out of options unless we have already made good progress down the path of reducing emissions," Mr Coleman said.