A country in the middle of the Pacific Ocean has managed to penalize the oil industry with a result that should be copied in America. A measure that was controversial at first has ended up becoming a success: by doing this, they hope to raise more than 100 billion dollars, and we know what they are going to spend it on from now on.
One of the countries that exports the most oil is not Arab: it is in the middle of the ocean and is one of the most polluting
Australia is standing in first place in the world in the export of coal and second in the export of liquefied natural gas (LNG). The fossil fuel industry, being an integral part of the economy in Australia for many years, is old news.
Coal exports, acting as a single section, account for nearly $55 billion worth of annual exports, making up about 15% of the entire exports of Australia. Besides huge amounts of coal, oil, and gas available under Australian soil, Australia serves as a major exporter of energy in the global markets.
More than BHP and RIO Tinto entities, Australia is home to the major mining companies that have operations across the country searching for resources. Moreover, no promises have been made regarding the long-term viability of fossil fuel exports within Australia and other countries.
Australia’s move to raise $100 billion: the whole world takes notice
A return to fossil fuels taxation as a way to mitigate emissions as well as other problems was suggested by the most prominent economists in Australia.
The tax is a non-all-inclusive levy applied to all coal, gas, and oil exported from Australia. It will also work to curb carbon emissions by making fossil fuel export very expensive for businesses.
The estimate is that it could elevate over the first year to AUD$100 billion in bringing funds that could be used in the energy transition, including the climate actions undertaken by the country.
How does Australia plan to implement this measure? The proposal with which they are going to finance their ecological transition
The very first proposal of a fossil fuel export levy was an issue that had gotten much public debate down through the years but came to fruition in 2023. Following months and even years of argument and compromise, the bill for imposing the tax was accepted and enacted by the Australian parliament and ceased to be an issue.
From the beginning of 2024, the 5% excise tax on fossil fuel exports has been operative. As a result, from this date, coal, oil, and gas-producing organizations would have to affiliate with the tax as well.
The tax was set during the time of departure and was at the rate of 10 cents of every value of the commodity being exported. The implementation process proceeded with a minimum of complications, despite the fact that the lobbyists for doomsday coal were on a non-stop campaign against the tax to the last moment.
They put forward the view that the proposed measure would adversely affect the export competitiveness and endanger the positions of workers in the industry. But there, too, deep support and a spirit of political will were required to get a bill into law and to implement it exactly as planned.
Of course, Australia’s oil industry has leaped, but backward. The key is that the most polluting companies should be the ones to finance the ecological transition. Do you know who the proposal actually comes from? The United Nations, with its carbon footprint offsetting mechanism that we have yet to adopt in America (although some companies have started to do so).
