Importantly, the report also sets out why the policy\u00a0slogans being trotted out by opposition Coalition members and the fossil fuel lobby will not solve the problems Australia faces, on repeat, every time global energy supplies are disrupted. And why now, more than ever, the true solution is there for the taking.<\/p>\n
For instance, on the matter of oil, the report notes that Australia does have a large resource of what is known as oil shale, which \u201coften causes misconceptions\u201d about its place in the global oil supply chain.<\/p>\n
\u201cUnlike liquid oil reserves, oil shale is a petroleum source rock which has not undergone the complete process to become oil. It requires mining and industrial processing to extract oil, and is one of the highest cost sources of oil. Australia currently has no oil shale production.\u201d<\/p>\n
Canavan has also suggested that answer lies in building new oil refineries \u2013 a option he claims is a relatively fast and \u201ceasy\u201d way to secure Australia\u2019s fuel independence compared to developing new oil fields. But this claim, too, is challenged.<\/p>\n
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Source: Climate Council<\/p>\n
\u201cI find it ludicrous that the Liberal National Party is advocating in 2026 for massive Australian government subsidies for new refineries given, under their watch in government, we dropped from six to two refineries,\u201d Climate Energy Finance director Tim Buckley told Renew Economy.<\/p>\n
\u201cAustralia is [not] producing anywhere near enough of our own oil or diesel to actually sustain our economy. So I find it absolutely hypocritical \u2026 that the party of \u2018small government\u2019 is advocating for massive ongoing taxpayer subsidies to invest in new white elephants that would take at least a decade to be built,\u201d Buckley says.<\/p>\n
\u201cThey do nothing for Australian energy security in the next decade, at a time when [electric vehicle] technology and battery technology is probably the most profound disruption globally in 2026 and we could be replacing $50 billion a year of annual diesel and oil imports with home grown, clean, low cost, deflationary Australian energy.\u201d<\/p>\n
According to the Climate Council report, Australia\u2019s current fleet of almost 1.3 million fully-electric or hybrid-electric cars, utes and vans \u2013 comparatively small though it is \u2013 reduces national use of petrol and diesel by almost 15 million litres every week.<\/p>\n
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Meanwhile, consumers with petrol and diesel vehicles are feeling the pain of a far-flung global conflict. In March alone, the report says, the Iran invasion-driven increase in fuel prices cost Australians more than $1.05 billion in increased costs at the pump.<\/p>\n
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And even if Australia could readily \u2013 and economically \u2013 increase its domestic fuel supply the Climate Council argues that this is unlikely to do anything to insulate Australian fuel prices from global shocks.<\/p>\n
\u201cAustralians pay international prices for coal, oil and gas \u2013 and increasing supply won\u2019t break this link,\u201d the report says \u2013 just take gas as an example.<\/p>\n
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\u201cAustralia already produces five times more gas than we need,\u201d the report says. But \u201csince we started exporting gas from the east coast, gas prices have almost quadrupled. This is despite declining production almost tripling, and demand falling 10 per cent.<\/p>\n
\u201cExtracting more gas would only hand more profits to multinational gas corporations, and lock in more expensive and polluting gas for longer.<\/p>\n
\u201cHistory shows that this won\u2019t increase energy security or reduce prices in Australia, and will only increase corporate profits and climate pollution.\u201d<\/p>\n
Greg Bourne, a former BP executive and energy advisor to UK Prime Minister Margaret Thatcher \u2013 and now a Climate Councillor \u2013 says its time to embrace the future, \u201cnot cling to the past.\u201d<\/p>\n
\u201cUnlike the global oil crises of the 1970s, this time there are cheap and abundant alternatives to fossil fuels: renewable energy and electric vehicles are already widely deployed. We just need more,\u201d Bourne says.<\/p>\n
\u201cThe sun doesn\u2019t care about the Strait of Hormuz and the wind doesn\u2019t care who\u2019s in the White House.<\/p>\n
\u201cThe Australian government is better placed than most to capitalise on renewable energy solutions. That would be the best response. The worst response would be to double down and commit to long-term investments in the fuels that are driving the price rises being felt by every Australian right now.\u201d<\/p>\n
Among the key budget measures the Climate Council wants to see is the continued use of fringe benefits tax exemptions to encourage EV uptake, while also extending it to shared and active transport and redirecting tax exemptions for large, fuel-intensive utes and vans to clean transport.<\/p>\n
For heavy industry, the Climate Council targets Australia\u2019s diesel dependence with a call to phase-out the fuel tax credit scheme \u2013 starting with a fuel tax credit rebate cap of $50 million for large mining corporations.<\/p>\n
\u201cCredits above this cap should be redirected to support the uptake of zero-emissions machinery, unlocking billions of dollars in budget-neutral support for energy security,\u201d the report recommends.<\/p>\n
Similarly, the Climate Council has joined the growing call for a national gas exports tax, with the revenue collected from this used to deliver cost of living relief and fund efforts to scale up clean energy \u2013 a bit like Norway\u2019s oil-based Sovereign Wealth Fund.<\/p>\n
At the household level, the Climate Council wants to see the Cheaper Home Batteries scheme continue its good work in slashing energy costs for households and soaking up the nation\u2019s abundant rooftop solar.<\/p>\n
On the to-do list is to strengthen the Household Energy Upgrades Fund by offering zero-interest finance for household energy upgrades, replacing the marginally discounted rates currently available.<\/p>\n
\u201cWe\u2019re proposing key measures that will set us up for energy security now and into the future: accelerating the roll out of renewables, electrifying homes, transport and industry, appropriately taxing fossil fuels and using the revenue to fund the transition,\u201d says Climate Council CEO Amanda McKenzie.<\/p>\n
\u201cThe more we can electrify our homes and transport, the more we reduce our reliance on imported oil and gas. That not only cuts costs, it shields Aussie households, farms and businesses from on-going global price shocks.<\/p>\n
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\u201cIt\u2019s crucial that our government does not settle for short-term thinking and short-term fixes; it needs to meet the moment by reducing reliance on fossil fuels and investing in reliable, affordable Australian power from the sun, wind and batteries.\u201d<\/p>\n
As for Canavan, in his recent\u00a0<\/p>\n