The Federal Government’s Budget 2021-22 relegates climate funding to the margins and assumes fossil fuels will drive growth. 

Experts say environment and climate spending represents just 0.8 per cent of the federal budget.

There is a marginal increase of $16 million on last year’s spending for on-ground biodiversity work, but not enough to reverse the 39 per cent decline in funding for these programs since the Coalition came to office in 2013. 

Over the forward estimates (through to 2025) the budget projects a decline of 55 per cent for on-ground biodiversity work from 2013.

The budget also includes $29.3 million over four years to implement the stalled reforms to the Environment Protection and Biodiversity Conservation Act.

However, there is no funding to help the states and territories assume national responsibilities for environmental approvals, as proposed by the Morrison government. 

There is also no funding to develop strong national environmental standards or to develop and implement a comprehensive response to Graeme Samuel’s independent review of the EPBC Act.

The budget includes $22.3 million for a pilot biodiversity stewardship program and $9.1 million for the creation of environmental markets.

Water funding under Outcome 5 in the Department of Agriculture, Water and the Environment is a large spending area, however funding is due to rapidly decline by 2024-25, repeating the pattern from the 2018-19 Budget.

There is $100 million for marine park management, restoring coastal areas, expanding Indigenous Protected Areas to include the sea in nine locations, and for natural capital accounting to quantify the environmental and economic benefits of marine ecosystems.

The Budget also includes $10 million for recovery efforts for 10 species, including the platypus.

It outlines $209.7 million for an Australian Climate Service to increase the government’s capacity to predict and prepare for extreme weather events caused by a changing climate.

Up to $30 million in funding has been earmarked for the Katherine-Darwin Interconnected System big battery project and microgrid rollout in the Northern Territory.

However, the focus on boosting gas and other fossil fuels is significantly higher. 

The fuel tax credit subsidy, which allows multinational mining companies like Rio Tinto, BHP and Glencore to avoid paying tax on their off-road diesel use, will cost Australians $35.5 billion across the forward estimates.

In his budget speech Treasurer Josh Frydenberg talked about “unlocking vast gas reserves”.

The budget includes $58.6 million for the gas industry (including $38.7 million directly to gas infrastructure) through providing money for:

  • Gas storage facilities at Golden Beach and Iona in Victoria

  • The expansion of South West Victorian Pipeline

  • The Wallumbilla Gas Supply Hub in Queensland ($6.2 million over two years)

  • An import terminal project – most likely at Port Kembla in NSW

  • A pipeline pre-feasibility study for the North Bowen Basin in Queensland

The budget includes $539.2 million for five hydrogen hubs and carbon capture and storage projects that aim to prolong the life of the fossil fuel industry, as well as $217 million to upgrade roads in the Northern Territory linked to gas in and around the Beetaloo Basin.

The government will provide $15.7 million in 2021-22 to support gas industry field appraisal trials in the North Bowen and Galilee basins.

The budget includes $30 million over two years for Squadron Energy’s gas and hydrogen power station in Port Kembla. The proposed power station was one of 12 projects shortlisted under the government’s Underwriting New Generation Investments program in 2019. Only two other shortlisted projects received initial support, both for proposed gas generators.

The Australian Conservation Foundation (ACF) - which was refused access to this year’s pre-budget lock-up - says the funding shows the government’s priorities. 

“The Morrison government continues to shovel public money at fossil fuel projects while reducing funds for tackling climate change and the degradation of nature,” said ACF’s Economy and Democracy Program Manager, Matt Rose.

“The government is throwing loose change at Australia’s climate and extinction crisis.”