Restricting fossil fuel incentives could accelerate the transition towards environmentally friendly alternatives, a study found.
More mines might roll out electric heavy vehicles if diesel fuel tax credits are capped at $50 million a year each company. This is predicted to save the federal government a combined $14 billion by 2030.
The following proponents are already affected by “hyper inflationary” diesel imports: BHP, Rio Tinto, Glencore, Anglo American, Peabody Energy, Hancock Prospecting, Fortescue Metals Group and Yancoal.
“This is not a revenue grab we are trying to encourage them to do the right thing,” Climate Energy Finance Corporation founding director Tim Buckley said according to the Australian Associated Press.
Buckley suggested extra taxpayer money should be spent on luring Liebherr, Komatsu, Caterpillar and more to expand their domestic electric vehicle operations.
“We could be an incubator of these technologies,” he said according to the newswire agency.
The Minerals Council of Australia (MCA) found the industry has already reduced scope one emissions by 9.3 per cent during the 2022 financial year.
The latest climate action plan-progress report shows emissions reported through safeguard mechanisms, and the National Greenhouse and Energy Report scheme, declined during fiscal 2022. The sector also made “strong progress” towards achieving net zero by 2050.
“The industry has made substantial progress in the three years since the MCA launched the climate action plan while supporting Australian jobs, and royalties and taxes, to state and federal governments,” MCA CEO Tania Constable said in a public statement.
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