Coalition Faces Internal Revolt Over Coal Subsidy Plan as Turnbull Condemns “Fact-Free Culture War”
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The Liberal-National Coalition’s newly finalized climate policy has ignited fierce internal divisions and scathing criticism from former Prime Minister Malcolm Turnbull, who accused the party of conducting a “fact-free culture war” over energy policy while moderate MPs question potential taxpayer subsidies for aging coal-fired power stations.
The Coalition’s joint party room meeting finalized a climate and energy agenda prioritizing affordability and reliability over emissions reduction targets, with Shadow Energy Minister Dan Tehan defending provisions that could extend the operational life of coal plants through government underwriting.
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The policy framework, released after prolonged internal negotiations, represents a significant departure from previous climate commitments and has exposed deep philosophical rifts within the Coalition as it struggles to present a unified front ahead of the next federal election.
Tehan told morning television programs the approach would be “technology-neutral” when asked about taxpayer funding for coal infrastructure. “In the short term, as you are aware, New South Wales Labor Government is investing in coal. The Victorian Labor Government is investing in coal,” Tehan said, defending the Coalition’s position. “We would look, in a technology-neutral way, to adjust the capacity investment scheme.”
According to reports from the party room meeting, moderate Liberal MPs raised persistent questions about the potential for taxpayer funds to underwrite new coal power projects. Tehan reportedly deflected these concerns by framing the policy as a temporary measure before transitioning to market-based solutions.
“But in the longer term, we want to be able to move to a market where basically it is left up to the market and there would be no underwriting,” Tehan added in his television appearance.
The policy has drawn withering criticism from Turnbull, who lost the Liberal Party leadership twice over energy and climate disputes. Speaking on ABC Afternoon Briefing, the former prime minister characterized the Coalition’s approach as ideologically driven rather than economically sound.
“Basically what has happened is that the right wing of the Liberal Party, which consists of most of the Liberal Party nowadays, and the National Party have turned what should be a matter of engineering and economics and facts into an ideological culture war issue,” Turnbull said.
Turnbull noted the dramatic economic transformation in energy generation over the past two decades. “Back 20 years ago, renewables were more expensive than burning coal,” he said. “Now we’re in the happy circumstance where the cheapest forms of new generation are renewable, above all solar. And the millions and millions of Australians that have solar panels on their roofs understand that.”
The former prime minister offered a particularly colorful assessment of current Coalition dynamics, describing Opposition Leader Sussan Ley as trapped “in a fish tank consisting of goldfish that have no memory, that forget everything that they’ve done the last time around, and they act like piranhas.”
“They’ve got the memory of goldfish and the dining habits of piranhas,” Turnbull added, referencing the Coalition’s history of internal leadership battles over climate policy.
Turnbull attributed the Coalition’s policy direction to what he characterized as an echo chamber dominated by conservative media. “It is designed to gratify the right-wing sort of media ecosystem dominated by Sky News,” he said. “And that is basically what is now in charge of the coalition.”
The policy release comes as the Coalition faces mounting pressure to articulate credible alternatives to the government’s climate agenda while managing internal tensions between pragmatic moderates and conservative hardliners.
Prime Minister Anthony Albanese seized on the Coalition’s internal divisions, characterizing the policy as a desperate attempt to maintain Ley’s leadership. “It is just a policy to try and get the Leader of the Opposition through to Christmas as the Leader, in spite of the fact she is being undermined each and every day by her own colleagues,” Albanese said.
The Prime Minister specifically referenced multiple leadership aspirants within Coalition ranks, including Shadow Defence Minister Angus Taylor, Shadow Home Affairs Minister Andrew Hastie, and Shadow Communications Minister Melissa McIntosh.
Energy policy has proven politically treacherous for the Coalition throughout the past 15 years, contributing to multiple leadership changes and ongoing factional warfare. The issue first cost Turnbull the Liberal leadership in 2009 when he supported emissions trading legislation, and again in 2018 when conservative MPs revolted against his National Energy Guarantee policy.
The current policy framework’s emphasis on extending coal plant operations stands in stark contrast to global energy market trends, where renewable generation has become increasingly cost-competitive. Australia’s residential solar adoption rate remains among the world’s highest, with more than 3.6 million households installing rooftop systems.
Industry analysts have questioned the economic viability of subsidizing aging coal infrastructure when renewable alternatives offer lower generation costs. The Coalition has not released detailed costings for potential government interventions to keep coal plants operational beyond their planned retirement dates.
Several major coal-fired power stations across New South Wales, Victoria, and Queensland have announced closure timelines over the coming decade, citing economic pressures and the falling cost of renewable alternatives. Energy companies have consistently indicated that market forces rather than political interventions will determine generation mix.
The Coalition’s approach also faces scrutiny regarding Australia’s international climate commitments and relationships with key trading partners increasingly focused on emissions reduction. Major export markets including Japan, South Korea, and European nations have implemented carbon border adjustment mechanisms that could affect Australian exports.
Turnbull warned that the Coalition’s rejection of economic realities in favor of ideological positioning would ultimately prove politically damaging. “You can’t run energy policy, or any policy for that matter, on the basis of culture war talking points,” he said.
The former prime minister expressed sympathy for Ley while suggesting her position had become untenable given internal party dynamics. “I feel sorry for Susan Lee,” Turnbull said, though he offered little optimism about her ability to navigate the competing pressures.
Opposition sources indicated moderate MPs remain concerned about the policy’s economic credibility and potential electoral liability, particularly in urban seats where voters have demonstrated strong support for climate action. However, conservative MPs have defended the approach as essential to maintaining base support and differentiating from Labor’s policies.
The policy debate occurs against the backdrop of rising energy costs affecting households and businesses nationwide, creating political pressure on both major parties to demonstrate credible plans for affordable, reliable power supply.
Neither Ley nor her office responded to requests for comment on Turnbull’s criticisms or questions about internal party divisions over the climate policy framework.
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