Biodiversity-harmful subsidies in Australia

Abstract

As a signatory to the Global Biodiversity Framework, Australia has committed to eliminate or reform biodiversity-harmful subsidies but has not yet initiated any relevant action. We present a preliminary assessment of biodiversity-harmful subsidies in Australia and the scope for reform. We adopted a method recommended by the Organisation for Economic Co-operation and Development and collaborated with biodiversity experts to assess the relative potential impact of different Australian Government subsidies on biodiversity. We identified biodiversity-harmful subsidies worth $26.3 billion in 2022–2023. Experts ranked subsidies for the extraction and use of fossil fuels in energy and transport, and for agriculture, fisheries and forestry, as the most potentially harmful. At 1.1 per cent of Australia’s gross domestic product, this estimate is materially significant. Due to data limitations, the total value of biodiversity-harmful subsidies in Australia is likely to be higher. Achieving Australia’s international commitments under the Global Biodiversity Framework would require biodiversity-harmful subsidies to be reduced to a level where positive incentives and increased funding from all sources can achieve a nature-positive trajectory.