The Australia Institute's Rod Campbell said the government was planning a $US1.02-billion-dollar subsidy for the planned Adani coal mine in Queensland.
He said this was more than Australia's Pacific aid budget for this year.
Mr Campbell said the mine would also result in more fossil fuel emissions than those coming from New Zealand and all the Pacific Island countries combined.
He said the government was backing the new coal mine despite Pacific island nations pushing for a moratorium on new mining.
