$41 Billion in Fossil Fuel Projects Strain Construction Supply Chain

$41 billion worth of committed resource and energy infrastructure projects are absorbing construction capacity that could be used to build essential infrastructure, such as housing and roads.
Following the Reserve Bank’s latest forecasts, Treasurer Jim Chalmers faces pressure to reduce infrastructure investment to ease inflation and increase housing construction. Cutting back on fossil fuel projects is seen as an effective initial step to address this issue.

Key Points:

Over half of the $77.4 billion in total committed resource and energy infrastructure projects is allocated to fossil fuels ($41 billion).
Government approval of new coal mines or gas expansions diverts resources from essential infrastructure construction.
Official government data indicates that fossil fuel projects account for 53% of the total funding committed to resource and energy infrastructure.
Taxpayer money is being used to fund private infrastructure projects that impede the construction of public transport and housing.
In the Northern Territory alone, the Commonwealth Government is spending $100 million on roads specifically for the onshore gas industry.

Greg Jericho, Chief Economist at the Australia Institute, commented, “Every time the government approves new coal mines or gas expansions, it’s diverting labor and equipment away from essential infrastructure like houses, roads, and railways. Official government data shows that fossil fuel projects constitute over half of all committed resource and energy infrastructure across Australia. This equates to $41 billion worth of new fossil fuel projects straining the construction supply chain. If the government truly wants to unclog the infrastructure pipeline and free up capacity for housing construction, it should start by scaling back the fossil fuel projects that have congested it in the first place.”