Australia's Fossil Fuel Focus Risks $70 bn Export Losses, WWF Report Finds

A new WWF‑Australia report warns that the country’s strategy of backing fossil‑fuel exports while touting renewable‑energy leadership is economically risky. Government support totals about A$20.1 billion a year for fossil fuels versus only A$4.6 billion for renewables. The analysis estimates that Australia could lose up to A$70 billion in export value by 2035 as global demand shifts toward clean energy.

Rob Law, senior energy‑transition manager at WWF‑Australia, said the dual approach “sends contradictory signals to investors and weakens Australia’s credibility as a trading partner.” Major buyers such as China and South Korea are rapidly increasing clean‑energy investments, roughly double the region’s spending on fossil fuels. Continued fossil‑fuel subsidies also threaten emerging sectors like green‑iron production, which depend on cheap renewable electricity. The report projects steep declines in demand for Australian LNG and coal, with coal demand in China, Japan and India expected to fall up to 69 % by 2050.