Australia's Fossil Fuel Support Undermines Renewable Energy Bid

Australia's dual energy strategy is sending mixed signals to investors and trading partners, according to a new report from WWF. The Energy Crossroads study found that the fossil fuels sector in Australia receives four times more government support than green energy industries, with an estimated $20.1 billion per year compared to $4.6 billion for renewables.

This undermines Australia's bid to be a renewable energy superpower and creates policy uncertainty, raising the cost of capital for transition investment, WWF says. The report warns that demand for fossil fuel exports is already weakening and could fade faster than expected, with LNG exports and Asia's LNG imports both falling in 2025.

Australia risks being left behind if it continues to favour fossil fuels over renewables, the report concludes. It calls for a renewable energy security strategy that plans for the inevitable decline of fossil fuels, builds and accelerates renewable and electrified energy systems, and redirects policy and investment towards a managed transition.