AUSTRALIA has rejected a statement of support for reform of fossil fuel subsidies after Prime Minister Malcolm Turnbull made a last-minute call to break the news to New Zealand counterparts on Sunday night in Paris.
The statement, which is due to be launched at the first full day of the Paris climate summit, will see almost 40 countries sign a communique committing to promote the phase out of inefficient government subsidies for the use of coal, gas and oil.
Organisers had hoped Australia would also get on board. But with rural and conservative MPs in the Coalition revolting back home in Canberra, Australia has decided not to put its name to the statement.
It is understood Australia had expressed some concern about the use of an International Monetary Fund definition of subsidy early in the discussions about the platform, which the French had wanted in order to be involved.
Australia has already signed up to what some might consider tougher language on fossil fuel subsidies - which are effectively government incentives making it cheaper to use, coal, gas or oil - through the G20, which in 2009 committed to phasing out inefficient subsidies.
A spokeswoman for Mr Turnbull confirmed to Fairfax Media that he would not sign up to the communique at the Paris summit.
New Zealand Prime Minister John Key will join UN climate change head Christiana Figueres, Chile President Michelle Bachelet, Prime Minister of Sweden Stefan Lofven and Danish Prime Minister Lar Lokke Rasmussen in launching the fossil fuel subsidy reform statement.
The Prime Minister will give a speech to the UN climate summit early on Tuesday morning Australian time. He is one of about 150 world leaders attending the Paris meeting on Monday.
Back home fossil fuel subsidies has been a tricky issue with a major between dispute between environmentalists and industry over whether a diesel rebate for farm and mine trucks should be considered.
The Australian Conservation Foundation has said the diesel rebate would cost Australians $26 billion over the next four years. But mining and farm groups say the rebate compensates them for tax paid on fuel used in off-road vehicles that is being collected for road maintenance.
It is unclear that signing up to the fossil fuel subsidy statement would have actually required Australia to make any changes to the fuel tax credit for miners and farmers.
When the prospect of Australia signing up to the statement emerged over the weekend it sparked anger among some Coalition MPs, who voiced vocal opposition to the idea.
Queensland Nationals MP George Christensen on twitter said "this communique, if signed, will cost coal mining jobs. For sake of NQ jobs, I oppose this."
The International Energy Agency this month noted that fossil fuel subsidies continue to outpace those for renewable energy by a factor of more than four-to-one. In 2014, those subsidies totalled $US490 billion ($695 billion) compared with $US112 billion for clean energy sources in the power sector.
with Peter Hannam