CLIMATE
BHP’s $622M Tax Break Is Slowing Climate Progress
The federal government is paying BHP millions in fuel tax credits, making it cheaper for the mining giant to stick with diesel than to switch to green energy.
The GuardianBHP received $622 million in federal fuel tax credits last financial year, a subsidy that analysts say is actively discouraging the company from electrifying its massive diesel truck and rail fleets. While BHP has previously labeled climate change an 'existential' threat, internal documents suggest the company has shelved key decarbonization projects because they aren't financially viable under current tax policy.
- BHP is the largest recipient of the Australian federal fuel tax break, netting $622m last year.
- The Australasian Centre for Corporate Responsibility (ACCR) warns this subsidy makes diesel abatement projects financially unattractive.
- Internal documents reveal BHP has delayed or scrapped plans to electrify its Pilbara diesel truck fleet and abandoned various renewables projects.
- The ACCR suggests that removing the tax credit would make most of BHP's fleet electrification projects immediately viable.
WHY THIS MATTERSThis matters because your tax money is being used to subsidize pollution, creating a financial barrier to the energy transition. If the government removed these credits, BHP would have a direct financial incentive to stop burning diesel, accelerating the shift to cleaner technology.