Guest Speaker: Baethan Mullen, CEO of The Superpower Institute
Key takeaways
Australia has a remarkable opportunity in the clean-energy transition: to cut emissions, strengthen the economy and make sure communities share fairly in the benefits.
The Superpower Institute sees that Australia has the renewable resources, industrial capability and export potential to become a clean-energy superpower.
The challenge is ensuring policy settings line up with that ambition.
In this recent session, our guest speaker Baethan Mullen, CEO from The Superpower Institute discussed two of their current policy initiatives: the Polluter Pays Levy and the Fair Share Levy.
The Superpower Institute was founded by economist Ross Garnaut and public policy expert Rod Sims to help Australia seize the economic opportunities of a post-carbon world. The Superpower Institute is a not for profit organisation. Their focus is to support Australia to become a major exporter of renewable energy and green industrial products; to elevate Australia’s economic and climate ambition; and to secure our place as a leader in a decarbonised global economy.
How a Polluter Pays Levy would work
At the heart of the Institute’s Polluter Pays Levy is a policy that introduces a levy on heavy polluters, in order to reduce Australia’s emissions.
The focus of the policy is on Australia’s largest emitters. The design is deliberately simple: it would focus on a relatively small number of fossil fuel extraction sites and import points, while covering a large share of Australia’s emissions.
The proposed levy model would begin at $17 per tonne and rise over time, eventually aligning with the European Union carbon price.
The case for this approach is both environmental and economic. Australia is not currently reducing emissions quickly enough to meet its targets, and the federal budget faces long-term structural pressure. Pricing pollution would create clearer investment signals, reward cleaner choices and reduce emissions at lower cost than many more complex alternatives.
Protecting households while cutting emissions
Revenue from the levy would initially be recycled heavily back to households through an Energy Compensation Payment and a targeted Household Support Package. The aim is to shield households from higher energy costs, with additional support for those most exposed. Small business support is also part of the broader package.
The proposal is designed with fairness in mind…the aim is to shield households and small business from higher energy costs.
The Institute projects that the Polluter Pays Levy could help deliver an additional 100 million tonnes of emissions reduction annually after 10 years.
The Fair Share Levy: getting a fairer return from national resources
A second proposal, the Fair Share Levy, would address a different but related issue: whether Australians receive an adequate return from publicly owned gas resources. The levy would apply to gas producers and replace the Petroleum Resource Rent Tax.
Under the proposal, a 40% levy would apply in addition to corporate tax, producing an effective combined rate of around 58%. The Institute argues this would bring Australia closer to other fossil fuel-producing nations and ensure the public receives a fairer share of profits from gas reserves.
Together, the Polluter Pays and Fair Share levies are projected to raise an average of about $35 billion a year over time. After household compensation, that revenue could support budget repair, electrification and other investments needed for the transition. The proposals also appear to have strong public resonance: polling cited in the presentation found broad support for a levy on major polluters and even stronger support for Australians receiving a better return from resource exports.
Why the politics may be changing
Of course, carbon pricing remains politically sensitive in Australia. Past debates have left scars, and governments may be cautious about reopening them. But the presentation made a compelling argument that the policy context has changed. The choice is no longer between acting and not acting; it is between different ways of meeting climate goals, managing household costs and positioning Australia for future prosperity.
The strength of the proposal lies in its clarity. It asks polluters to pay, households to be protected, and Australia to use its advantages wisely. In a country rich in renewable resources and industrial potential, pricing pollution could be more than a climate policy. It could be an economic strategy for a fairer, cleaner and more confident future.
About the speaker
For the past two years Baethan Mullen has been the CEO of Superpower Institute. He brings over two decades of experience in public policy, economics, and regulatory affairs, He has held senior leadership roles across federal, state, and not-for-profit sectors with expertise in energy, regulatory affairs, and economics. Starting out as a lawyer, Baethen spent much of his career in a variety of roles at ACCC. He has previously been the Executive Director of Victoria’s Essential Services Commission.
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