As the COP26 climate summit closes in on a deal to end the public financing of fossil fuels, new research has revealed the tens of billions in foreign investment directed towards Australia.
Public financial institutions overseas have contributed up to $36.7b into Australian fossil fuel projects over the past decade, according to the analysis.
The report, conducted by environmental groups including Jubilee Australia and the Australian Conservation Foundation, found this was 11 times the amount directed towards renewable energy.
That figure was $3.3 billion between 2010 and 2020.
The analysis reviewed the contribution of sources such as overseas export credit agencies - but also showed the disparity in investment had narrowed in recent years.
The research has been released amid reports of a deal being orchestrated at the COP26 climate summit in Glasgow to gain global support for an end of the public financing of fossil fuels.
At least 19 countries plan to commit to stopping the public financing for fossil fuel projects abroad by the end of next year, according to sources.
It’s understood the British government, which is leading the effort, remains engaged in last-minute talks to clinch deals with more countries to sign the pledge before it's launched.
Countries who have signed up include Denmark, Finland, Costa Rica, Ethiopia, Gambia, and the Marshall Islands, plus some development institutions, including the European Investment Bank and the East African Development Bank
The countries would commit to end public support for foreign fossil fuel energy projects by the end of 2022, though the deal would allow for unspecified exemptions in limited circumstances.
Tristan Edis, director of research group Green Energy Markets, said global momentum has been growing for some time towards reaching such an agreement.
“Those increments are now building towards almost like a tidal wave,” he told SBS News.
“That’s the way it kind of works - a trickle and then a flood.”
Prime Minister Scott Morrison has directly cited the changing nature of the world’s response to climate change and global economy as reasons for Australia to adopt a net zero emissions by 2050.
The government’s plan unveiled ahead of COP26 also recognises the changing investment risk declaring that “failing to act” would increase the chance Australian businesses face higher capital costs.
But Mr Edis said he is concerned Australia has not shown a willingness to commit to joining such a global agreement.
“We’re still in the dark ages. They are still in denial about what’s happening here,” he said.
“They are acknowledging there is a risk here - but they haven’t done [what] they need to do to solve it.”
The International Energy Agency - considered the key authority on these markets - has said ending investments in oil, coal or gas supply projects is necessary for the world to reach net-zero global emissions by 2050 - which scientists say is crucial for keeping the average global temperature from rising more than 1.5C.
Beyond that threshold, global warming could unleash catastrophic and irreversible impacts.
The research into foreign investment in Australia's fossil fuel industry examined sources including the Oil Change International’s Shift the Subsidies database - which monitors energy finance from public finance institutions.
If found of the $36.7b, at least $28.07b went to Australian LNG projects, including an estimated $10.53b to the Ichthys LNG project in north west Australia and $7.84b to the Australia Pacific LNG project in Queensland.
Three countries supplied Australia the bulk of public financing in fossil projects, with 41.3 per cent coming from Japan, 22.7 per cent from China and 12.6 per cent from South Korea.
Jubilee Australia Campaigns Director, Dina Rui, said the funding must stop if we want to avoid the worst impacts of climate change.
“Australia should support the shift away from fossil fuels, not try to hold back progress by blocking stronger agreements to end public funding of coal and gas,” she said.
Australia has been notably absent from deals struck at the COP26 climate summit aimed at increasing global consensus on reducing green house emissions.
It has refused to sign up to a pledge to phase out coal fulled power generation and stop building new plants despite 190 nations and organisations doing so.
Australia also did not sign up to an initiative to cut methane emissions by 30 per cent before 2030 after nearly one hundred nations agreed to join the United States and European Union-backed pledge.
But Mr Morrison has defended the government’s climate plan taken to the COP26 talks.
Following his visit to Glasgow, Mr Morrison said, “it's not about the if and when” of addressing the climate crisis, “it's only about the how”.
“We need a mission focus of the world's [research and development] efforts into the technologies that are actually going to make a difference.”
