ADELAIDE, Thursday 12 March

New analysis has found that the financial impacts of South Australia’s ongoing algal bloom are in excess of $250 million, and that a small levy on the state’s biggest gas operators could easily recoup those costs. 

The analysis, compiled by Springmount Advisory for Conservation Council SA, finds that South Australia’s gas and oil industry generates at least 6.5 million tonnes of climate pollution every year, contributing to climate impacts like algal blooms, but contributing nothing to fund clean-ups and restoration.  

"It's only fair that South Australia's biggest climate polluters contribute to repairing the damage they cause," said Kirsty Bevan, CEO of Conservation Council South Australia.

"Given the scale of the gas industry's emissions, it should be footing the bill for climate damage like this algal bloom."

Key Findings:

• The algal bloom has cost South Australia over a quarter of a billion dollars over the past 12 months, including over $46.8 million to its tourism industry, over $100 million to its fisheries industry, and over $100 million to State and Federal Governments. 
• South Australia’s gas and oil companies extract at least 6.5 million tonnes of climate pollution each year, make $10.2 billion a year in income, pay only 0.9% in income tax, and pay virtually nothing to help clean up the impacts of their climate pollution.
• A levy of just $2.5 per GJ of oil and gas production from South Australia could raise  between $254 million and $275 million each year to help cover the costs of climate impacts like the algal bloom.

This analysis follows recent research by RedBridge for the Superpower Institute, which found that the majority of Australians (68%) support a levy on large climate polluters. 

“While the average business in South Australia pays its fair share of tax of between 25-30%, local fossil fuel producers, despite making tens of billions each year, pay next to nothing in income tax,” said Tom Quinn, analysis author and Managing Director of Springmount Advisory.

“Gas and oil companies should pay to fix the mess and economic destruction their products are causing in South Australia.”

Rob Blackburn, Marine Operations Manager at Adelaide Scuba, said, “The algal bloom has impacted the dive industry heavily, and we’ve had to put in an enormous amount of work to convince people to dive with us, and that they will have an enjoyable time.”

“With a warming planet, it’s very hard to ignore that algal blooms are going to keep happening with increasing regularity. With this algal bloom, we're seeing climate change happen in real time.”

—ENDS— 

For more information please contact Nelli Stevenson on 0481 303 815 or email [email protected] 

Notes for editors:

Access the full report, photos of spokespeople and photos of the algal bloom here.