Public purse props up fossil fuel industries

May 8, 2007
From Sydney Morning Herald

GOVERNMENT subsidies to some of Australia's electricity generation companies are so big they exceed the profits made by those companies, a report on energy and transport subsidies says.

Government support for the coal industry and coal-fired electricity is so generous that in some cases it has led to the construction of coal-fired power plants when other types of electricity generation would have been cheaper, the report by the Institute for Sustainable Futures at the University of Technology Sydney has found.

Subsidies to fossil fuel energies, worth close to $10 billion, result in a serious market distortion, create an unfair disadvantage to renewable energy, and help increase greenhouse gas pollution, says the report, written by the institute's research principal, Chris Riedy, and commissioned by Greenpeace.

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