Motion Seeks Financing from Polluters
Australian local government leaders are set to vote on a pivotal motion for the establishment of a Climate Compensation Fund at the Australian Local Government Association (ALGA) National General Assembly, taking place from 23rd to 25th June 2026 in Canberra.
The motion, proposed by the City of Sydney and endorsed by the ALGA Board, calls for a Parliamentary inquiry to explore levies and taxes on coal, oil, and gas corporations to finance the fund. This initiative aims to alleviate the financial strain on councils facing escalating climate-related costs.
Jess Miller, Deputy Lord Mayor of the City of Sydney, highlighted the unsustainable financial pressures on councils, stating, "Councils, including the City of Sydney, are increasingly feeling the unsustainable financial burden created by responding to more frequent and more severe climate impacts."
Mounting Costs and Proposed Solutions
Australia's 537 councils shoulder the responsibility of maintaining a third of the nation's infrastructure, yet face revenue growth that lags behind the rising costs of climate disasters. Fires, floods, and cyclones currently impose an annual cost of $38 billion, a figure expected to rise to $73 billion by 2060.
Toby Heydon, Mayor of Mount Alexander Shire Council, remarked on the severe impact of recent fires, advocating for the motion by asserting, "It's time for polluters to pay their fair share to clean up disasters they are responsible for."
The motion also demands an examination of the 2025 National Adaptation Plan's adequacy, a dedicated funding stream for local governments, and the introduction of a Climate Pollution Levy on fossil fuel industries.
David Law, Councillor for Division 10 Sunshine Coast Council, emphasised the financial strain on councils due to repeated disasters, suggesting that a Climate Compensation Fund could provide a "fair and practical solution" for funding recovery and resilience efforts.
The outcome of this motion will be decided during the first motions session on Wednesday, 24th June. Prime Minister Albanese is expected to address the assembly on Thursday evening.
