27/05/2026
Guardian: 'Labor’s grassroots environment action group (LEAN) has also renewed calls to wind back the diesel fuel rebate following an exclusive investigation by the Guardian and the ABC, which revealed BHP scrapped a project to significantly reduce global emissions, delayed vast renewables projects in the Pilbara and war-gamed options to push the electrification of its polluting diesel truck and train fleets into the next two decades.
Experts and analysts say the slowdown in BHP’s decarbonisation progress shows the failure of a key climate policy, the safeguard mechanism, and the influence of the diesel tax break the federal government gives to big miners including BHP.
Analysis provided to the Guardian suggests BHP paid less than $9m under the safeguard mechanism for its excess emissions last financial year.
At the same time, the analysis suggests it received $622m in fuel tax credits from the federal government for its use of diesel, including about $379m for its Western Australia iron ore mines.
BHP’s use of diesel is a major contributor to its emissions.
'More than 270 local ALP branches across the country have passed motions supporting a Labor Environment Action Network (Lean) campaign to cap diesel fuel tax credits at $50m per company, building momentum ahead of the Adelaide conference.
Lean’s national co-convener, Louise Crawford, said: “[We] have been saying for months that the diesel fuel tax credit needs reform – it should be pushing the biggest miners toward electrification, not the opposite.
“Capping the rebate at $50m would free up funds to invest in electrification for those companies and others. And it would send a clear signal to get on with it.”
