State puts money where mouth isn't

Herald Sun
Tuesday 18/3/2008 Page: 28

THE Victorian Government is investing more than $1.2 billion in fossil fuels and the nuclear industry while pushing a policy of long-term emissions reductions and renewable energy targets. A report by the Australian Conservation Foundation into the investing habits of Australian governments shows just $26 million from five of Victoria's public investment funds is put into renewable energy companies.

The Victorian Government has legislated against uranium mining and exploration in the state, and has committed to reduce emissions by 60 per cent by 2050. And just $12 million of the $72 billion in five federal government investment funds is put into renewables. The Responsible Public Investment in Australia report, to be released today, looked at 36 federal, state and territory investment funds and whether environmental, social and governance issues affected investment decision making.

ACF executive director Don Henry said the report showed investment decisions were in direct conflict with commitments to tackle climate change. "Rather than invest this public money in companies building new coal-fired power stations and mining uranium, it should be invested in companies developing renewable energy and finding innovative ways to use energy efficiently," he said.

The report comes as a Newspoll survey commissioned by Greenpeace found 84 per cent of Australians believed the Federal Government should increase subsidies for renewable energy sources, such as solar and wind power, within the next year. The poll also found 90 per cent of Australians wanted renewable energy to be given the same or greater subsidies than fossil fuels receive. "Rather than adding to their profits, we should be penalising the use of fossil fuels and putting public money into renewable energy solutions, such as solar and wind," Greenpeace campaigner Julien Vincent said.