The NSW Government is currently spending significantly more public money promoting coal than helping regional communities transition away from it, according to new research by the Australia Institute. 

The report, Greenwashing Coal in New South Wales, reveals a stark contrast in funding priorities. State government organisations that are meant to be supporting communities with the transition away from coal have an initial budget of just $5.2 million, while public subsidies for coal research and promotion far exceed this amount. 

Key points:

• The NSW Government’s proposed Future Jobs and Investment Authorities for the Hunter, Illawarra, Central West and North West regions aim to assist coal-reliant communities' transition. But they are severely underfunded with a collective budget of just $5.2 million for all four authorities.
• These Authorities are not able to access increased funding from the Future Jobs and Investment Fund until 2028-29.
• Organisations devoted to promoting and prolonging the NSW coal industry, by contrast, have significantly more resources:
  • Coal Innovation NSW spent $27 million last year and has a balance of $45 million.
  • The coal industry organisation Low Emissions Technology Australia (LETA) is promoted as a $700 million fund. This fund is publicly subsidised, but recently asked to stop receiving contributions due to a significant surplus of funding.

The report calls for the abolition of Coal Innovation NSW and associated funds. It also recommends royalty deduction subsidies to LETA be immediately abolished.

“The NSW Government is far more focused on promoting coal than helping communities move away from it,” said Rod Campbell, Research Director at The Australia Institute. 

“The current approach undermines both the state’s emissions reduction efforts and the future of regional communities.

“What governments do is more important than what they say. Regional communities need funding to transition smoothly, but instead, the lion’s share of government funding is used to promote speculative technologies that assist the coal industry. 

“The NSW Government has the opportunity to lead the way by redirecting funds and ensuring these communities thrive in a post-coal economy. It should impose a moratorium on new coal projects, abolish Coal Innovation NSW and end royalty deductions for coal industry promotion.

“In contrast to the meagre funding in NSW, the German Coal Commission budgeted $3.4 billion per year to allow its regions to move past coal. This is what genuine climate leadership and caring for communities looks like. Unfortunately, the NSW Government has a long way to go.

“This research shows that the NSW Government is happy to use the budget to subsidise the coal industry, just as its response to the Newcastle coal port protests showed that it was happy to sacrifice democratic rights for the coal industry.”

Beau Blenman, a 7th generation Hunter Valley local who has worked in mining for over two decades said: "Coal mining has devastated our once-beautiful agricultural valley, damaging the environment and eroding the fabric of our community.”

"The toll from coal mining in the Hunter has been severe, from polluted air to degraded aquifers. Despite the government’s claims of caring about biodiversity, mining rehabilitation efforts here have been woefully inadequate.

"We're witnessing our weather systems change while foreign-owned companies profit at the expense of our land and people,” Mr Blenman said.