With the federal budget two weeks away, the Climate Council is calling on the Albanese government to replace $11.6 billion spent on fossil fuel subsidies with "structural" environmentally friendly investments that could lower costs for households.
In a report released on Friday, the Climate Council says the government could use money from fuel subsidies to install more than 72,000 electric vehicle charging stations - one for every 12 kilometres of road - or install solar panels to power 1.5 million low-income households.
Climate Council advocacy head Dr Jennifer Rayner said the organisation based its figures on fossil fuel subsidies paid in the 2021-2022 financial year and five projects it considered "better bets".
In addition to solar panels and EV charging stations, Dr Rayner said the funds could be used to replace all diesel buses in Sydney, Melbourne and Brisbane, create 138 renewable energy storage facilities similar to Victoria's Big Battery in Geelong, or fund another 15 pumped hydro projects to shore up the energy grid.
Dr Rayner said each of the projects was environmentally friendly and some would offer cost savings to households under financial pressure.
"If we're giving solar panels to lower-income families, that's going to help with their bills and reduce the cost of living," she said.
"This is an opportunity to make big structural changes."
Climate Council economist Nicki Hutley, who prepared the report, said investing the funds in electric vehicle charging sites could also make it easier for Australians to avoid rising petrol prices.
Australia has a network of more than 3000 public electric vehicle charging stations but, with an $11.6 billion investment, Ms Hutley estimates the country could roll out 72,500 EV chargers - one for every 12km.
By comparison, Norway has an EV charger for every 50km of roads at 17,000.
KPMG has flagged climate change as a key concern in the October budget.
Federal Treasurer Jim Chalmers has promised a "responsible" budget about "difficult decisions in difficult times".
"If there's going to be one defining feature in this budget ... it's going to be responsible economic management in the midst of high and rising inflation and persistent structural pressures," he told a press conference this week.
