Australian fossil fuel projects given $36.7bn in foreign public financing over a decade | Energy

Public financial institutions overseas, including export credit agencies, poured $36.7bn into Australian fossil fuel projects over a decade, according to new research.The report, by a group of environmental groups including Jubilee Australia and the Australian Conservation Foundation, found this was 11 times more than the amount directed to renewable energy, which received $3.3bn between 2010 and 2020.But it also found the gap between finance available for fossil fuels and renewable energy had narrowed in recent years.The paper has been released as the Cop26 climate summit in Glasgow is expected to bring closer focus on the public financing of fossil fuels, with the UK reported to be pushing for a deal to stop foreign funding of such projects.Earlier this month, OECD countries agreed to end export credit support for unabated coal-fired power plants. In September, China announced it would no longer fund coal-fired power plants overseas.The research examined databases – including Oil Change International’s Shift the Subsidies database – that track public energy financing.Of the $36.7bn, it found $28.07bn went to LNG projects in Australia, including $9.67bn to the Ichthys LNG development in north-west Australia and $7.76bn for Australia Pacific LNG in Queensland.The research says the total figure is likely to be higher because many public financial institutions do not publish detailed records of their transactions.Three countries supplied Australia the bulk of this LNG financing, with Japan providing 41% ($11.7bn), China 20% ($5.6bn) and South Korea 14% ($3.96bn).About $6.7bn went to coal projects.Sign up to receive the top stories from Guardian Australia every morningThe Jubilee Australia campaigns director, Dina Rui, said public financing for fossil fuels would need to end if countries wanted to avoid the worst effects of the climate crisis.“Even the traditionally conservative International Energy Agency says that staying below 1.5C of warming means there can be no new coal, oil or gas projects,” she said.“Australia should support the shift away from fossil fuels, not try to hold back progress by blocking stronger agreements to end public funding of coal and gas.”Contributions peaked in 2012, when about $18.5bn flowed to Australian projects.The report found contributions had fallen in recent years, particularly in 2020 when $364,000 went to fossil fuel projects, compared to $317,000 for renewables.But the research put this down to the Covid-19 pandemic “lowering fossil fuel demand and causing project delays, rather than a downwards trend”.Tim Buckley of the Institute for Energy Economics and Financial Analysis said pressure was building on countries to end capital subsidies for fossil fuels.“My number one issue is the constant refrain from the Morrison government that fossil fuels are a low-cost source of energy and that renewables aren’t as cost-effective,” he said.“If they were so viable, why does an industry that has been around for centuries still need subsidies?”Quick GuideHow to get the latest news from Guardian AustraliaShowPhotograph: Tim Robberts/Stone RFThank you for your feedback.But he said the amount of global public finance directed toward fossil fuels had diminished in the past two years, with a shift towards investment in renewables.“I expect that trend to continue,” he said.“But the question is why is anyone still providing literally billions in capital subsidies to coal, oil and gas?”

Source: https://www.theguardian.com/australia-news/2021/nov/04/australian-fossil-fuel-projects-given-367bn-in-foreign-public-financing-over-a-decade