Govt over-subsidises coal-fired electricity

96pc of subsidies for fossil fuels: More than 96 per cent of that money flowed to fossil fuel production and consumption, with the remainder going to renewable energy and energy efficiency. However, over 90 per cent of the subsidies identified in the report would increase greenhouse gas emissions, it says.

• road users benefit most from the subsidies, with about 74 per cent of taxpayer funds supporting fossil fuel industries flowing to the transport sector;

• another 18 per cent goes to electricity generation and 8 per cent to other kinds of stationary energy;

• the aluminium smelting industry – which had lobbied aggressively against putting a price on greenhouse gas pollution, has also benefited from subsidies. It is estimated to use almost 15 per cent of Australia’s electricity making it responsible for almost 6 per cent of greenhouse gas emissions. "The annual subsidy for electricity use at the six existing Australian aluminium smelters is at least $210 million, and is likely over $250 million," the report says. "This removes the incentive to reduce electricity usage and hence cut emissions."

The Sydney Morning Herald, 8/5/2007, p. 7

Source: Erisk Net 

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