Australia's energy min says net-zero plan likely to cost far more than allocated $20 bn

Ahead of the COP26 climate summit, Australia’s energy minister Angus Taylor on Sunday, 31 October, said that the Coalition’s “technology not taxes” plan for net zero emission by 2050 could cost taxpayers much more than the $20 billion allocated by the Morrison government. In an interview with ABC’s Insider, Taylor said that more will need to be spent beyond 2030 to reach the target. He also confirmed that the run rate of the money that the federal government is spending over the next decade is what the officials would also expect into the future as further spending on research, development and carbon credits would probably be needed. 

The Australian emissions reduction minister refused to detail how much taxpayers will have to fork out over the course of the next three decades. He informed that Australian PM Scott Morrison’s plan for the net-zero is based largely on existing Coalition policies, while also relying on emissions reductions from technology yet to be developed. Taylor went on to say that the whole purpose of the plan is to avoid imposing costs on Australians by spending $20 billion by 2030 on technologies including clean hydrogen, low-emissions steel and aluminium, soil carbon and carbon capture and storage. 

When asked for the full cost to 2050, the Australian minister said that the future governments will allocate as they see fit into the 2030s and 2040s. However, he added that the current federal government expects the same “run rate” of spending for the future as well. Taylor assured that despite the cost of at least $20 billion, taxpayers wouldn’t have to pay anything. “We are not raising taxes,” he said. 

Further, while speaking to the media outlet, Taylor confirmed that the plan includes an extra $20 billion to be spent on carbon offsets through the rebadged emissions reduction fund. He also confirmed that he had spoken in Rome to Mathias Cormann, the former finance minister who is now the head of the OECD. He said that there was “absolutely no plan” to change Australia’s 2030 target, as voters had endorsed the 26-28% reduction at the last election. 

Aus’ policy based on ‘choices, not mandates’ 

It is to mention that Taylor’s statement comes as Morrison defended Australia’s opposition to language in a draft G20 communique committing nations to “phase out and rationalise” fossil fuel subsidies by 2025 and to curb coal power. Previously, the Australian PM had also stated that the nation’s policy was based on “choices, not mandates”. He admitted that at least 15% of the abatement work was dependent on future technological breakthroughs, adding that this had been the contemporary world's experience and that no one could foresee advancements in the next 30 years. He also stated that in the present world, the rate of technical progress is a given. According to him, to believe it will not have a part in the next 30 years is the more startling assumption.

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