Australia’s councils back call for fossil fuel exporters to pay climate costs instead of Aussie ratepayers 

Australian ratepayers had a big win yesterday as Australia’s 537 local councils agreed to call on the Albanese government to impose a national levy on coal, oil and gas companies to help them cope with escalating climate damage. 

The motion, put forward by the City of Sydney at the National General Assembly of Australian local governments, for a climate compensation to be funded by a levy on coal and gas exports was formerly adopted unopposed. 

If the Albanese government imposes the levy, it will shift the cost of climate change from ordinary Australian ratepayers to the foreign-owned fossil fuel exporters, causing the damage.  

The Australia Institute has long advocated for a  levy on fossil fuel exports to make the fossil fuel exporters pay for the harms it has caused and raise up to $100 billion every year.  

The revenue raised would be an enormous boost to local councils and others currently bearing the costs of climate change, including emergency services, property owners and Australian taxpayers generally. 

The levy would have no impact on energy prices in Australia because the government can impose it only on exports. The levy is also sound economic management in line with the principle that polluters should pay for the damage they cause, not the people impacted by the pollution. 

The case is also boosted by the lack of taxes and royalties paid by many of the foreign owned energy companies exporting Australia coal and gas. Gas exports worth $170 billion paid no royalties and no PRRT over the last 4 years. 

While $100 billion would an enormous help to the Australian community, it is still significantly less than the true social and economic cost of Australia’s fossil exports. For instance, if the levy is set at the current rate of the EU trading scheme (around $150 AUD per tonne of carbon) it would raise around $150 billion annually. 

Mark Ogge is Principal Advisor at The Australia Institute.