What you will find on this page: LATEST NEWS; Fossil fuel emissions have stalled; does the world need hydrogen?; Mapped: global coal trade; Complexity of energy systems (maps); Mapped: Germany’s energy sources (interactive access); Power to the people (video); Unburnable Carbon (report); Stern Commission Review; Garnaut reports; live generation data; fossil fuel subsidies; divestment; how to run a divestment campaign guide; local council divestment guide; US coal plant retirement; oil conventional & unconventional; CSG battle in Australia (videos); CSG battle in Victoria; leasing maps for Victoria; coal projects Victoria
Huge task to decarbonise
Source: Australian Delegation presentation to international forum held in Bonn in May 2012
Latest News 28 August 2015, The Conversation, Newcastle’s ‘divestment’ is a chance for the world’s largest coal port to consider its future. The City of Newcastle council’s Tuesday night endorsement of an “environmentally and socially responsible” investment policy threw more mud than a pig wrestling competition at the country show. The controversy thickened this morning as stories emerged that the council also recently accepted an A$12-million offer to expand coal terminals at its port, the world’s largest in terms of coal exports. Amid jeers of hypocrisy and cheers of climate leadership, what can we really say about this policy move in one of New South Wales’ historic coal towns? Investment, not divestment. The council’s unprecedented move to adopt an investment policy which applies traditional investment criteria but also adds a “preference for environmentally and socially responsible investment (if criteria are met)” might rate a media mention, given the recent fossil fuel divestment move by certain universities and governments. But Newcastle’s historical dependence on coal means that the council’s decision sparked a media frenzy and councillors have been in overdrive explaining the policy and their position towards the region’s major industry. Defending both the nuance and intention of the Investment Policy, Newcastle Lord Mayor Nuatali Nelmes explained to ABC Newcastle that “it is not at all and never will be about undermining the coal industry”. Similar statements have been made by the councillor who moved the climate-friendly policy motion, 23-year-old Declan Clausen. Prime Minister Tony Abbott has come out against the policy. Read More here 26 August 2015, The Guardian, US environmental agency advising Australia on impact of fracking on water. The US’s Environmental Protection Agency has given Australia’s Department of the Environment details of recent fracking study and is peer reviewing papers. The Australian government has obtained information from US environmental regulators on the impact of fracking upon water supplies to help inform a new set of guidelines it is preparing on the controversial activity. The US’s Environmental Protection Agency has supplied the Australian Department of the Environment with the details of a recent study on fracking. The EPA has also helped the department peer review a number of its own documents. The EPA report is the result of a request from Congress to analyse how fracking for oil and gas is affecting water supplies in the US. Fracking, or hydraulic fracturing, is a process where a combination of water, chemicals and sand is injected deep underground in order to release oil or gas from rocky areas. Fracking is banned in Victoria and has faced opposition from environmental groups, some farmers and radio personality Alan Jones in New South Wales and Queensland. However, the EPA report said it could find no evidence of “widespread, systemic impacts on drinking water resources in the United States” from fracking, which is deployed across vast swathes of the country. Read More here 25 August 2015, BBC, Carbon credits undercut climate change actions says report. The vast majority of carbon credits generated by Russia and Ukraine did not represent cuts in emissions, according to a new study. The authors say that offsets created under a UN scheme “significantly undermined” efforts to tackle climate change. The credits may have increased emissions by 600 million tonnes. In some projects, chemicals known to warm the climate were created and then destroyed to claim cash. As a result of political horse trading at UN negotiations on climate change, countries like Russia and the Ukraine were allowed to create carbon credits from activities like curbing coal waste fires, or restricting gas emissions from petroleum production. Under the UN scheme, called Joint Implementation, they then were able to sell those credits to the European Union’s carbon market. Companies bought the offsets rather than making their own more expensive, emissions cuts. But this study, from the Stockholm Environment Institute, says the vast majority of Russian and Ukrainian credits were in fact, “hot air” – no actual emissions were reduced. Read More here 25 August 2015, The Conversation, Time for the ‘green tape’ debate to mature: jobs and the environment are not implacable foes. The highly charged debate over the proposed Carmichael coal mine, which culminated in Attorney-General George Brandis’s decision last week to propose winding back environmental legal protections, has exposed the simmering tension between “jobs” and “the environment” on Australia’s political landscape. On one hand, those seeking to invest in the development of Australia’s natural resources and jobs growth have been making a clear case that Australia’s system of assessment and approval for major projects is riddled with procedural uncertainty. On the other, environmental advocates and local communities feel that the current system does not adequately protect the environment – correctly pointing out Australia’s less than stellar record in preventing species from going extinct. As a nation, however, we need to lift our game on both fronts. Investors in the Australian economy and those seeking jobs and growth need certainty with regard to where and how they invest. Equally, to avoid warfare (or “lawfare”) on a project-by-project basis, Australia’s environmental advocates and local communities need certainty too. They need clarity about where and how economic development can occur without harming our environmental heritage. Read More here 2 July 2018, Carbon Brief, Analysis: ‘Global’ warming varies greatly depending where you live. As part of the Paris Agreement on climate change, the international community committed in 2015 to limit rising global temperatures to “well below” 2C by the end of the 21st century and to “pursue efforts to limit the temperature increase even further to 1.5C”. However, these global temperature targets mask a lot of regional variation that occurs as the Earth warms. For example, land warms faster than oceans, high-latitude areas faster than the tropics, and inland areas faster than coastal regions. Furthermore, global human population is concentrated in specific regions of the planet. Here, Carbon Brief analyses how much warming people will actually experience where they live, both today and under future warming scenarios. The warming experienced by people is typically higher than the global average warming. In a world where warming is limited to “well below” 2C about 14% of the population will still experience warming exceeding 2C. In the worst-case scenario of continued growth in emissions, about 44% of the population experiences warming over 5C – and 7% over 6C – in 2100. Warming is not globally uniform Different parts of the world respond in different ways to warming from increasing greenhouse gas concentrations. For example, ocean temperatures increase more slowly than land temperatures because the oceans lose more heat by evaporation and they have a larger heat capacity. High-latitude regions – far north or south of the equator – warm faster than the global average due to positive feedbacks from the retreat of ice and snow. An increased transfer of heat from the tropics to the poles in a warmer world also enhances warming. This phenomenon of more rapidly warming high latitudes is known as polar amplification. Read more here
30 June 2018, The Guardian, ‘We’ve turned a corner’: farmers shift on climate change and want a say on energy. Out in the bush, far from the ritualised political jousting in Canberra, attitudes are changing. Regional Australia has turned the corner when it comes to acknowledging the reality of climate change, says the woman now charged with safeguarding the interests of farmers in Canberra. Fiona Simson, a mixed farmer and grazier from the Liverpool plains in northern New South Wales, and the president of the National Farmers’ Federation, says people on the land can’t and won’t ignore what is right before their eyes. “We have been experiencing some wild climate variability,” Simson tells Guardian Australia’s politics podcast. “It’s in people’s face”. “While we are a land of droughts and flooding rains, absolutely at the moment people are seeing enormous swings in what would be considered usually normal. They are getting all their rainfall at once, even though they end up with an annual rainfall that’s the same, it’s all at once, or it’s in so many tiny insignificant falls that it doesn’t make any difference to them. And the heat. We’ve had some record hot summers and some weird swings in seasons”. Simson acknowledges there are “always going to be some outliers who are going to have some wild ideas” in farming or in any other sector of the Australian economy but she says “overwhelmingly, I think it’s got to the point where the science is very acceptable”. Read more here 27 June 2018, Climate Homes News, Leaked final government draft of UN 1.5C climate report – annotated. A draft summary of the most important climate science report of 2018, published here annotated with changes from the previous version. What is this document? This is the second draft of the summary for policymakers of the special report on 1.5C. It has been compiled by climate scientists from around the world. A draft, which was published by Climate Home News in February, was circulated to the scientific community for review earlier this year. The latest version, dated 4 June, has been sent to governments for comments on the ‘summary for policymakers’ (see below). The review runs until 29 July. What is a ‘summary for policymakers’? The full report, known as the IPCC Special Report on Global Warming of 1.5C, will run to hundreds of pages of scientific data and findings. This is shortened set of conclusions and findings drawn from the larger report designed to provide information in a useable way for decision makers. Throughout the text you’ll see references to chapters in the larger report in curved brackets: eg. {2.3,2.5.3}. Read More here 26 June, Carbon Brief, Guest post: Unprecedented summer heat in Europe ‘every other year’ under 1.5C of warming. As summer gets underway in the northern hemisphere, much of Europe has already been basking in temperatures of 30C and beyond. But while the summer sun sends many flocking to the beach, with it comes the threat of heatwaves and their potentially deadly impacts. Tens of thousands of people across Europe died in heatwaves in 2003 and 2010, for example, while the “Lucifer” heatwave last year fanned forest fires and nearly halved agricultural output in some countries. With international ambition to limit global temperature rise to “well below” 2C above pre-industrial levels now enshrined in the Paris Agreement, we have examined what impact that warming could have on European summer temperatures. Our results, published today in Nature Climate Change, find that more than 100 million Europeans will typically see summer heat that exceeds anything in the 1950-2017 observed record every other year under 1.5C of warming – or in two of every three years under 2C. Human influence on European climate There has been a substantial amount of work showing that recent heatwaves and hot summers in Europe have been strongly influenced by human-caused climate change. This includes the very first “event attribution” study that made a direct connection between human-caused climate change and Europe’s record hot summer of 2003. As a densely populated continent, recent hot summers and heatwaves have hit Europe withspikes in mortality rates. Europe is also a particularly good location to study the implications of the Paris Agreement limits because it has among the longest and highest quality climate data in the world. This means we have a better understanding of what past summers in Europe have been like and we can evaluate our climate model simulations with a higher degree of confidence, relative to other regions of the world. In our study, we looked at the hottest average summer temperatures across Europe since 1950 and found that for most of the continent these occurred in 2003, 2006 or 2010. There are exceptions, of course. For example, in Central England the hottest summer remains 1976. You can see this in the graphic below, which maps the decade of the hottest summer across Europe. The darker the shading, the more recently the record occurred. Read more here 3 November 2020, Carbon Brief: Hydrogen gas has long been recognised as an alternative to fossil fuels and a potentially valuable tool for tackling climate change. Now, as nations come forward with net-zero strategies to align with their international climate targets, hydrogen has once again risen up the agenda from Australia and the UK through to Germany and Japan. In the most optimistic outlooks, hydrogen could soon power trucks, planes and ships. It could heat homes, balance electricity grids and help heavy industry to make everything from steel to cement. But doing all these things with hydrogen would require staggering quantities of the fuel, which is only as clean as the methods used to produce it. Moreover, for every potentially transformative application of hydrogen, there are unique challenges that must be overcome. In this in-depth Q&A – which includes a range of infographics, maps and interactive charts, as well as the views of dozens of experts – Carbon Brief examines the big questions around the “hydrogen economy” and looks at the extent to which it could help the world avoid dangerous climate change. Access full article here Fossil fuel emissions have stalled 14 November 2016, The Conversation, Fossil fuel emissions have stalled: Global Carbon Budget 2016. For the third year in a row, global carbon dioxide emissions from fossil fuels and industry have barely grown, while the global economy has continued to grow strongly. This level of decoupling of carbon emissions from global economic growth is unprecedented.Global CO₂ emissions from the combustion of fossil fuels and industry (including cement production) were 36.3 billion tonnes in 2015, the same as in 2014, and are projected to rise by only 0.2% in 2016 to reach 36.4 billion tonnes. This is a remarkable departure from emissions growth rates of 2.3% for the previous decade, and more than 3% during the 2000’s. Read More here Do you want to understand the complexity of energy systems which support our high consumption lifestyles? Most people don’t give too much thought to where their electricity comes from. Flip a switch, and the lights go on. That’s all. The origins of that energy, or how it actually got into our homes, is generally hidden from view. This link will take you to 11 maps which explain energy in America (it is typical enough as an example of a similar lifestyle as Australia – when I find maps for Oz I’ll add them in) e.g. above map showing the coal plants in the US. Source: Vox Explainers Mapped: how Germany generates its electricity – another example Power to the People – Lock the Gate looks back at the wins of 2015 And there’s lots more coming up in 2016. Some of the big priorities coming up next for the “Lock the Gate” movement are: If you want to give “Lock the Gate” your support – go here for more info This new report reveals that the pollution from Australia’s coal resources, particularly the enormous Galilee coal basin, could take us two-thirds of the way to a two degree rise in global temperature. To Read More and download report The 2006 UK government commissioned Stern Commission Review on the Economics of Climate Change is still the best complete appraisal of global climate change economics. The review broke new ground on climate change assessment in a number of ways. It made headlines by concluding that avoiding global climate change catastrophe was almost beyond our grasp. It also found that the costs of ignoring global climate change could be as great as the Great Depression and the two World Wars combined. The review was (still is) in fact a very good assessment of global climate change, which inferred in 2006 that the situation was a global emergency. Read More here The Garnaut Climate Change Review was commissioned by the Commonwealth, state and territory governments in 2007 to conduct an independent study of the impacts of climate change on the Australian economy. Prof. Garnaut presented The Garnaut Climate Change Review: Final Report to the Australian Prime Minister, Premiers and Chief Ministers in September 2008 in which he examined how Australia was likely to be affected by climate change, and suggested policy responses. In November 2010, he was commissioned by the Australian Government to provide an update to the 2008 Review. In particular, he was asked to examine whether significant changes had occurred that would affect the analysis and recommendations from 2008. The final report was presented May 2011. Since then the Professor has regularly participated in the debate of fossil fuel reduction, as per his latest below: To access his reports; interviews; submissions go here 27 May 2015, Renew Economy, Garnaut: Cost of stranded assets already bigger than cost of climate action. This is one carbon budget that Australia has already blown. Economist and climate change advisor Professor Ross Garnaut has delivered a withering critique of Australia’s economic policies and investment patterns, saying the cost of misguided over-investment in the recent mining boom would likely outweigh the cost of climate action over the next few decades. Read More here Live generation of electricity by fuel type Fossil Fuel Subsidies – The Age of entitlement continues 24 June 2014, Renew Economy, Age of entitlement has not ended for fossil fuels: A new report from The Australia Institute exposes the massive scale of state government assistance, totalling $17.6 billion over a six-year period, not including significant Federal government support and subsidies. Queensland taxpayers are providing the greatest assistance by far with a total of $9.5 billion, followed by Western Australia at $6.2 billion. The table shows almost $18 billion dollars has been spent over the past 6 years by state governments, supporting some of Australia’s biggest, most profitable industries, which are sending most of the profits offshore. That’s $18 billion dollars that could have gone to vital public services such as hospitals, schools and emergency services. State governments are usually associated with the provision of essential services like health and education so it will shock taxpayers to learn of the massive scale of government handouts to the minerals and fossil fuel industries. This report shows that Australian taxpayers have been misled about the costs and benefits of this industry, which we can now see are grossly disproportionate. Each state provides millions of dollars’ worth of assistance to the mining industry every year, with the big mining states of Queensland and Western Australia routinely spending over one billion dollars in assistance annually. Read More here – access full report here What is fossil fuel divestment? Local Governments ready to divest Aligning Council Money With Council Values A Guide To Ensuring Council Money Isn’t Funding Climate Change. 350.org Australia – with the help of the incredible team at Earth Hour – has pulled together a simple 3-step guide for local governments interested in divestment. The movement to align council money with council values is constantly growing in Australia. It complements the existing work that councils are doing to shape a safe climate future. It can also help to reshape the funding practices of Australia’s fossil fuel funding banks. The steps are simple. The impact is huge.The guide can also be used by local groups who are interested in supporting their local government to divest as a step-by-step reference point. Access guide here How coal is staying in the ground in the US Sierra Club Beyond Coal Campaign May 2015, Politico, Michael Grunwald: The war on coal is not just political rhetoric, or a paranoid fantasy concocted by rapacious polluters. It’s real and it’s relentless. Over the past five years, it has killed a coal-fired power plant every 10 days. It has quietly transformed the U.S. electric grid and the global climate debate. The industry and its supporters use “war on coal” as shorthand for a ferocious assault by a hostile White House, but the real war on coal is not primarily an Obama war, or even a Washington war. It’s a guerrilla war. The front lines are not at the Environmental Protection Agency or the Supreme Court. If you want to see how the fossil fuel that once powered most of the country is being battered by enemy forces, you have to watch state and local hearings where utility commissions and other obscure governing bodies debate individual coal plants. You probably won’t find much drama. You’ll definitely find lawyers from the Sierra Club’s Beyond Coal campaign, the boots on the ground in the war on coal. Read More here Oil – conventional & unconventional May 2015, Oil change International Report: On the Edge: 1.6 Million Barrels per Day of Proposed Tar Sands Oil on Life Support. The Canadian tar sands is among the most carbon-intensive, highest-cost sources of oil in the world. Even prior to the precipitous drop in global oil prices late last year, three major projects were cancelled in the sector with companies unable to chart a profitable path forward. Since the collapse in global oil prices, the sector has been under pressure to make further cuts, leading to substantial budget cuts, job losses, and a much more bearish outlook on expansion projections in the coming years. Read full report here. For summary of report USA Sierra Club Beyond Oil Campaign Coal Seam Gas battle in Australia Lock the Gate Alliance is a national coalition of people from across Australia, including farmers, traditional custodians, conservationists and urban residents, who are uniting to protect our common heritage – our land, water and communities – from unsafe or inappropriate mining for coal seam gas and other fossil fuels. Read more about the missions and principles of Lock the Gate. Access more Lock the Gate videos here. Access Lock the Gate fact sheets here 2014: Parliament of Victoria Research Paper: Unconventional Gas: Coal Seam Gas, Shale Gas and Tight Gas: This Research Paper provides an introduction and overview of issues relevant to the development of unconventional gas – coal seam, shale and tight gas – in the Australian and specifically Victorian context. At present, the Victorian unconventional gas industry is at a very early stage. It is not yet known whether there is any coal seam gas or shale gas in Victoria and, if there is, whether it would be economically viable to extract it. A moratorium on fracking has been in place in Victoria since August 2012 while more information is gathered on potential environmental risks posed by the industry. The parts of Victoria with the highest potential for unconventional gas are the Gippsland and Otway basins. Notably, tight gas has been located near Seaspray in Gippsland but is not yet being produced. There is a high level of community concern in regard to the potential impact an unconventional gas industry could have on agriculture in the Gippsland and Otway regions. Industry proponents, however, assert that conventional gas resources are declining and Victoria’s unconventional gas resources need to be ascertained and developed. Read More here 28 January 2015, ABC News, Coal seam gas exploration: Victoria’s fracking ban to remain as Parliament probes regulations: A ban on coal seam gas (CSG) exploration will stay in place in Victoria until a parliamentary inquiry hands down its findings, the State Government has promised. There is a moratorium on the controversial mining technique, known as fracking, until the middle of 2015. The Napthine government conducted a review into CSG, headed by former Howard government minister Peter Reith, which recommended regulations around fracking be relaxed. Labor was critical of the review, claiming it failed to consult with farmers, environmental scientists and local communities. Read more here Keep up to date and how you can be involved here Friends of the Earth Melbourne Coal & Gas Free Victoria 20 May 2015, FoE, Inquiry into Unconventional Gas: Check here for details on the Victorian government’s Inquiry into unconventional gas. The public hearings have not yet started, however the Terms of Reference have been released. The state government’s promised Inquiry into Unconventional Gas has now been formally announced, with broad terms of reference (TOR). FoE’s response to the TOR is available here. The Upper House Environment and Planning Committee will manage the Inquiry. You can find the Inquiry website here. The final TOR will be determined by the committee. Significantly, it is a cross party committee. The Chair is a Liberal (David Davis), and there is one National (Melinda Bath), one Green (Samantha Dunn), three from the ALP (Gayle Tierney, Harriet Shing, Shaun Leane), an additional MP from the Liberals (Richard Dalla-Riva), and one MP from the Shooters Party (Daniel Young). Work started by the previous government, into water tables and the community consultation process run by the Primary Agency, will be released as part of the inquiry.The moratorium on unconventional gas exploration will stay in place until the inquiry delivers its findings. The interim report is due in September and the final report by December. There is the possibility that the committee will amend this timeline if they are overwhelmed with submissions or information. Parliament will then need to consider the recommendations of the committee and make a final decision about how to proceed. This is likely to happen when parliament resumes after the summer break, in early 2016. Quit Coal is a Melbourne-based collective that campaigns against the expansion of the coal and unconventional gas industries in Victoria. Quit Coal uses a range of tactics to tackle this problem. We advise the broader Victorian community about plans for new coal and unconventional gas projects, we put pressure on our government to stop investing in these projects, and we help to inform and mobilise Victorian communities so they can campaign on their own behalf. We focus on being strategic, creative, and as much as possible, fun! The above screen shot is of the Victorian State government’s Mining Licences Near Me site. Go to this link to see what is happening in your area Environment Victoria’s campaign CoalWatch is an interactive resource that tracks the coal industry’s expansion plans and helps builds a movement to stop these polluting developments. CoalWatch provides a way for everyday Victorians to keep track of the coal industry’s ambitious expansion plans. To check what tax-payer money has been pledged to brown coal projects and the coal projects industry is spruiking to our politicians. Here’s another map via EV website (go to their website and you should be able to get better detail from Google Maps: Red areas: Exploration licences (EL). These areas are held by companies to undertake exploration activity. A small bond is held by government in case of any damage. If a company wants to progress the project it needs to obtain a mining licence. Exploration Licence applications are marked with an asterix in the Places Index eg. EL4684*. Yellow areas: Mining Licences (MIN). A mining licence is granted with the expectation that mining will occur. A larger bond is paid to government. Green areas: Exploration licences that have been withdrawn or altered due to community concern. Green outline: Existing mines within Mining Licences. Purple areas: Geological Carbon Storage Exploration areas for carbon capture and storage. On-shore areas have been released by the State Government, while off-shore areas have been released by the Federal Government. The Coal Watch wiki tracks current and future Victorian coal projects, whether they are power stations, coal mines, proposals to export coal or some other inventive way of burning more coal. To get the full picture of coal in Victoria visit our wiki page. Get more info and see the full list of Exploration Licences current at 17 August 2012 here August 2015, Institute for Energy Economics & Financial Analysis – powerpoint: Changing Dynamics in the Global Seaborne Thermal Coal Markets and Stranded Asset Risk. Information from one of the slides follows. To view full presentation go here Economic Implications for Australia 83% of Australian coal mines are foreign owned, hence direct leverage of fossil fuels to the ASX is relatively small at 1-2%. However, for Australia the exposure is high, time is needed for transition and the new industry opportunities are significant: 1. Energy Infrastructure: Australia spends $5-10bn pa on electricity / grid sector, much of it a regulated asset base that all ratepayers fund much of it stranded. BNEF estimate of Australia’s renewable energy infrastructure investment for 2015-2020 was cut 30% from A$20bn post RET. Lost opportunities. 2. Direct employment: The ABS shows a fall of ~20k from the 2012 peak of 70K from coal mining across Australia, and cuts are ongoing. Indirect employment material. 3. Terms of trade: BZE estimates the collapse in the pricing of iron ore, coal and LNG cuts A$100bn pa from Australia’s export revenues by 2030, a halving relative to government budget estimates of 2013/14. Coal was 25% of NSW’s total A$ value of exports in 2013/14 (38% of Qld). Australia will be #1 globally in LNG by 2018. 4. The financial sector: is leveraged to mining and associated rail port infrastructure. WICET 80% financed by banks, mostly Australian. Adani’s Abbot Point Port is foreign owned, but A$1.2bn of Australian sourced debt. Insurance firms and infrastructure funds are leveraged to fossil fuels vs little RE infrastructure assets. BBY! 5. Rehabilitation: $18bn of unfunded coal mining rehabilitation across Australia. 6. Economic growth: curtailed as Australia fails to develop low carbon industries. In-depth Q&A: Does the world need hydrogen to solve climate change?
3 May 2016, Carbon Brief, The global coal trade doubled in the decade to 2012 as a coal-fueled boom took hold in Asia. Now, the coal trade seems to have stalled, or even gone into reverse. This change of fortune has devastated the coal mining industry, with Peabody – the world’s largest private coal-mining company – the latest of 50 US firms to file for bankruptcy. It could also be a turning point for the climate, with the continued burning of coal the biggest difference between business-as-usual emissions and avoiding dangerous climate change. Carbon Brief has produced a series of maps and interactive charts to show how the global coal trade is changing. As well as providing a global overview, we focus on a few key countries: Read More here/cdn0.vox-cdn.com/uploads/chorus_asset/file/3915730/EIA%20coal%20power%20plants.png)
21 April 2015, Climate Council, Will Steffen: Unburnable Carbon: Why we need to leave fossil fuels in the ground.Stern Commission Review
Australia’s Garnaut Review
November 2014 – The Fossil Fuel Bailout: G20 subsidies for oil, gas and coal exploration report: Governments across the G20 countries are estimated to be spending $88 billion every year subsidising exploration for fossil fuels. Their exploration subsidies marry bad economics with potentially disastrous consequences for climate change. In effect, governments are propping up the development of oil, gas and coal reserves that cannot be exploited if the world is to avoid dangerous climate change. This report documents, for the first time, the scale and structure of fossil fuel exploration subsidies in the G20 countries. The evidence points to a publicly financed bailout for carbon-intensive companies, and support for uneconomic investments that could drive the planet far beyond the internationally agreed target of limiting global temperature increases to no more than 2ºC. It finds that, by providing subsidies for fossil fuel exploration, the G20 countries are creating a ‘triple-lose’ scenario. They are directing large volumes of finance into high-carbon assets that cannot be exploited without catastrophic climate effects. They are diverting investment from economic low-carbon alternatives such as solar, wind and hydro-power. And they are undermining the prospects for an ambitious climate deal in 2015. Access full report here For the summary on Australia’s susidisation of it’s fossil fuel industry go to page 51 of the report. The report said that the United States and Australia paid the highest level of national subsidies for exploration in the form of direct spending or tax breaks. Overall, G20 country spending on national subsidies was $23 billion. In Australia, this includes exploration funding for Geoscience Australia and tax deductions for mining and petroleum exploration. The report also classifies the Federal Government’s fuel rebate program for resources companies as a subsidy.
