Parliamentary submission: Policy Reform overviewYou are to write a submission to the House of Representatives Standing Committee on the Environment, advocating for Australia to reduce financial...

Policy Reform Overview        4
POLICY REFORM OVERVIEW    
Table of Contents
Summary    3
Analysis    3
The financial subsidies for Australian fossil fuel industry    3
Aiming to reduce the fossil fuel usage in Australia    4
Solutions for reduction of fossil fuel usage    5
Why fossil fuel subsidies are so hard to kill?    6
Renewable sources of energy in Australia    8
Reforms in renewable sources of energy    9
Conclusion    9
References    10
Addressed to: House of Representatives Standing Committee on Environmental Issues
Title: Argument for advocating for Australia for reduction of financial incentives that encourages fossil fuel extraction and increase investment in renewable energy infrastructure
Summary
     Australia is considered as the major producer of fossil fuels globally and has become the world’s largest producer of liquified natural gas. Further its extraction and exports of coal in Australia which is also a part of the fossil fuel and is almost 29% of total trade. Also, it’s the fossil fuel industry which are extracting huge subsidies along with financial assistance from the government. There have been environmental concerns raised by the Biden government in US towards reduction of financial assistance and subsidies for fossil fuel. Australian government on the other hand have allocated $10.3 billion as budget for 2020-21 and this costs around $19686 for the public. Also, for setup of the infrastructure for producing fossil fuels, the federal government of Australia spends nearly $1.4 billion. Further, there have been an estimated budget of $8.3 billion in the form of financial assistance which needs to be provided to the fossil fuel companies due to project and capital spending (Queensland Government, 2013). Hence, it is necessary to cu
and eliminate the subsidies through various forms of reforms for Australian government for reducing the negative changes in the climate and using the funds for facilitating the public spending in other valuable sectors.
Analysis
The financial subsidies for Australian fossil fuel industry:
     The fossil fuel companies in Australia gets billions in the form of financial assistance from the federal government. Among the projects funded by the government consists of the coal, railways and power stations. The financial support by the Australian government for the fossil fuel industries amounted to $10.3 billion as on 2020-21. According to the research it is observed that the government of Australia have expended more funds in the subsidizing of the fossil fuel research process. This is an indirect way of expenditure through research and development tax credits as compared to the grants provided directly. It was due to this reason the fossil fuel companies in Australia received an amount of $1.4 billion for the research and development tax credits between 2012 and 2018 (Dowall, 2021).
Aiming to reduce the fossil fuel usage in Australia:
    It’s the developed countries around the world, most of the countries have committed to mobilize more then $100 billion annually by the year 2020 for reducing any forms of negative impact and actions in the developing countries. When fossil fuels are being burned, it releases nitrogen oxides in the air resulting in formation of smog and acid rains. Further, nitrogen released from the cars and other vehicles increases the nutrient pollution in the air and water. Also, its ammonia which is another compound of nitrogen which is emitted in the atmosphere from the agricultural activities and also from usage of fossil fuels. Hence, due to burning of fossil fuels, there is release of nitrogen oxides in the air impacting the atmosphere by increasing the level of pollution, depriving the aquatic regions from getting oxygen impacting their survival and increase in harmful algal substances. Fossil fuels in Australia is approximately a quarter of Australia’s export. Approximately 2/3rd of the fossil fuel is exported by Australia in countries such as China. Japan and South Korea. Also, around 4% of the fossil fuel is used in the thermal coal production, 7% in the production of coking coal and around 10% in the production of liquified natural gas. Hence, it’s the coking and thermal coal which is estimated to comprise approximately 80% of ca
on dioxide emission due to the exports of fossil fuels to different countries. The remaining 20% consists of the liquified natural gas. But if Australia reduces the export of fossil fuels and financial assistance by the federal government, then it might have an impact on the economy of the country. There are various policies set by the international bodies and developed...