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Is it time for a National Climate Compensation Fund?
With the cost of climate change currently weighing down consumers, a think tank has urged the government to pass the bill from everyday Australians onto large fossil fuel companies.
Is it time for a National Climate Compensation Fund?
With the cost of climate change currently weighing down consumers, a think tank has urged the government to pass the bill from everyday Australians onto large fossil fuel companies.
The Australian Institute is pushing the government to create a National Climate Compensation Fund and force the large pollutants, including the fossil fuel industry, to contribute by way of a levy on fossil fuel exports.
A report released late last year by Deloitte found that Australia’s economy will be 6 per cent smaller, there will be 880,000 fewer jobs, and $3.4 trillion in economic opportunities will be lost, if the climate crisis goes unchecked for the next 50 years.
A separate study released by the NSW Treasury found that climate change risk is going to cost the state over $10 billion annually over the next decade.
With the large costs associated with climate change, The Australian Institute said the National Climate Compensation Fund, which is expected to raise $5 billion annually, would cover the costs of changing working patterns and emergency responses to disasters.
These funds would also assist farmers, tourism operators, local government and others at the frontline of these impacts.
By pinning the levy on exports, the institute said it would have no impact on energy prices in Australia and would in fact create 5,000 jobs, including emergency responders, construction jobs and services to help support industries that have been negatively impacted by severe weather patterns.
“Just a few global coal, oil and gas companies are responsible for the vast bulk of the emissions fuelling climate disasters like fire, floods and heatwaves,” said Mark Ogge, principal adviser at The Australia Institute.
“Without a levy on these companies, NSW households and businesses will have to foot the bill, while the global coal giants get off scot-free.”
The Australian Institute pointed out that many fossil fuel exporters operate in NSW, yet contribute nothing to the costs of climate disasters, while the majority pay little to no tax.
“Someone has to pay for these costs. At the moment, the costs are paid entirely by ordinary NSW households and businesses through property loss, disruption, higher taxes, rates and insurance premiums,” Mr Ogge concluded.
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