Japanese climate coalition joins growing push for 25% gas export tax

Calls for Australia to impose a 25 per cent gas export tax have gained international backing, with a coalition of Japanese climate and advocacy groups urging the Albanese government to act. 

Fossil Free Japan – a coalition of more than 30 civil society groups – has thrown its support behind the ACTU’s proposed tax as the US–Israel war with Iran pushes liquified natural gas prices up by around 50 per cent. 

“This senseless violence in the Middle East has exposed the fragility of the global oil and gas supply chain, yet Japanese and Australian gas companies are quietly cashing in on the sideline,” said James Sherley, Senior Climate Justice Campaigner at Jubilee Australia Research Centre. 

“It is absurd that these companies are allowed to hoard wartime profits whilst the rest of us are struggling to make ends meet.” 

Japan has emerged as a major player in global gas trading, despite producing no liquefied natural gas of its own, and it’s all thanks to Australia. 

Research by the Institute for Energy Economics and Financial Analysis (IEEFA) shows Japan resold a record volume of liquified natural gas prices in the 2024 financial year rather than consuming it domestically. 

“Japanese companies and financiers cash in on Australian gas by reselling it to other countries while giving back almost nothing to the Australian public,” said Mia Watanabe, a campaigner at Oil Change International. 

Labor MP Ed Husic continues to break ranks and advocate for a 25 per cent gas tax, arguing Australia “begs for the scraps” from profiteering gas companies. 

Last month, the former industry minister revealed he had “a number of colleagues come up and indicate support” for the position he has taken. 

“We can’t be timid,” he said. “When we have a resource like this, it should make us an economic superpower. 

Mr Husic has also rebutted repeated claims of a domestic gas shortage, saying Australia’s problem was not one of supply but “a glut of greed.”  

Research by the Australia Institute shows Australians are missing out on $17 billion in foregone revenue every year. 

There has been a swell in cross-party and independent support for a proposed 25 per cent export tax. 

Most recently, Midnight Oil, Missy Higgins and around 150 other prominent Australian musicians added their voices to the growing chorus calling on the Prime Minister to act. 

Ahead of the May budget, the Albanese government has been considering new gas tax options, including a windfall levy or a reform of the Petroleum Resource Rent Tax (PRRT). 

The revelation prompted Japan’s ambassador to Australia, Kazuhiro Suzuki, to warn the tax would be a “bad surprise” and foreign investors would pull their money and “just go to other countries.” 

In February, nonprofit think tank InfluenceMap revealed the extent of Japan’s influence and investment in the Australian liquified natural gas industry, with firms INPEX, JERA, Mitsubishi, and Mitsui alone holding a combined US$50 billion (A$71b) in equity across 13 export projects. 

Fossil Free Japan argues Australian gas exports are “entrenching communities deeper into fossil fuel dependency” and derailing the renewable energy transition. 

“Without intervention, our energy system will remain dangerously exposed to geopolitical shocks, with prices and supply dictated by conflict rather than public need.” 

The Australian Greens and crossbenchers have secured a Senate Select Committee to look at taxing the country’s gas resources. 

“Gas corporations are ripping us all off and paying virtually no tax. While people are struggling to pay bills and seeing the cost of living go through the roof, gas corporations shouldn’t get a free ride,” said Greens leader Senator Larissa Waters. 

Greens resources spokesperson Senator Steph Hodgins-May will chair the committee. 

“This inquiry into a gas tax comes at a crunch moment. The gas cartel is poised to cash in on global conflict while Australians are being smashed with rising bills at home,” she said. 

Submissions to the committee close on Monday, 13 April, with the report due on 7 May 2026.