End government subsidies to the fossil fuel industry

CLIMATE BRIEFING
Governments around the world, including in Australia, subsidise the fossil fuel industry by giving them tax breaks and handouts. Eliminating fossil fuel subsidies could make extraction less profitable and decrease emissions by more than 20%. Ending fossil fuel subsidies is a crucial step toward building a sustainable and climate-resilient future.
This climate briefing is part of our series of simple, easy-to-follow guides and email templates on big climate topics for Australia. They’re designed to help you get across the issues, feel more confident speaking up, and make it easy to send a message to your MP about the things you care about.

Background and context

Historically, countries needed fossil fuels to power their economies, and put subsidies in place to encourage companies to produce that power. Subsidies remain in place partly due to this legacy, and also because some countries want to be independent producers of energy, or to boost their economy. 

However, fossil fuel subsidies continue to pose significant challenges to global efforts aimed at transitioning to renewable energy sources. According to the IEA Net Zero by 2050 report, all governments need to eliminate fossil fuel subsidies in the next few years if we hope to hit net zero by 2050 and limit warming to 1.5C. The IEA has “called time” on subsidies stating we are “moving ever farther away from meeting the goals of the Paris Climate Agreement”. The IMF estimates that such measures could decrease global fossil fuel-related carbon emissions by over 20%. 

Change is possible, and it’s happening elsewhere. Several countries have initiated reforms to reduce fossil fuel subsidies. In contrast, Australia continues to allocate substantial financial support to the fossil fuel industry. According to the Australia Institute, government assistance to fossil fuel producers and major users increased by 31%, from $11.1 billion in 2022-23 to $14.5 billion in 2023-24. Redirecting these funds toward renewable energy, public infrastructure, and climate adaptation would accelerate Australia’s transition to net-zero emissions while reducing taxpayer-funded support for polluting industries. 

Why is this important?

  • Fossil fuel subsidies encourage wasteful energy consumption and limit investment in renewables and energy-efficient technology
  • The fossil fuel system is misaligned with climate targets, stakeholders and developing technologies.  Australia’s insistence on propping it up is both economically and environmentally irresponsible
  • Governments should be supporting the growth of renewable energy instead

Who to contact: 

  • Your local Federal MPs (check on this website if you’re unsure who that is)
  • Key Federal Labor (addresses in link) including Resources Minister Madeleine King, Prime Minister Anthony Albanese; Treasurer Jim Chalmers; Climate and Energy Minister Chris Bowen; Trade and Tourism Minister Don Farrell
  • Federal Senate Crossbenchers (addresses in link) including Greens, David Pocock (ACT independent), Jacquie Lambie (JLN) and Tammy Tyrell, who hold the balance of power in the Senate
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Resources

Email example:

If you need some help getting started with your email, here is an example. 

Please don’t copy it exactly - personalise it and tailor it to the MP you are writing to. 

In addition, when writing to a Minister or Shadow Minister, start by saying that you’re writing to them in their role as Minister for xxxx, otherwise they will probably just forward your email to your local MP.

[MP name]

[Member for …. or  Minister for ….]

Dear …

[personal statement - who you are and why you care]

I am writing to ask you and your government to immediately end all fossil fuel subsidies, tax breaks and research grants. Those funds and incentives would be much better spent supporting renewables and Australia’s transition to net zero.

According to a recent report by the IEA, all governments must end fossil fuel subsidies in the next several years if we hope to reach net zero and limit global warming to 1.5C. Despite that, our country gave $14.5 billion in fossil fuel subsidies in 2023-2024. Given what Australia and the world stand to lose from climate change, this is inexcusable.  

I therefore ask:

Will you end all fossil fuel industry subsidies, including grants, tax breaks and research and development tax credits?

Will you shift these investments to renewable energy and research that will help Australia reach net zero?

I look forward to your response.

Sincerely,

Your Name

Address

Phone 

(Note: your contact details are required if you want a reply)

(Last updated March 2025)

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Preferential voting

Preferential voting is a system used in Australia’s federal and state elections where voters can rank candidates in order of preference. Instead of just voting for one candidate, voters number candidates on the ballot, starting with 1, 2, 3.. and continuing until the ballot is full. If no candidate secures an absolute majority of first-preference votes, the candidate with the fewest votes is eliminated, and their votes are redistributed according to second preference. This process continues until a candidate achieves more than 50% of the vote. Preferential voting ensures that elected representatives have broader support, and reduces the chances of vote splitting among similar candidates.

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