Cleantech and energy collaboration achieves policy gains

Cleantech and energy collaboration achieves policy gains

After the recent election with a huge new cohort of Labor and independent parliamentarians heading to Canberra, the Climate Capital Forum is committed to ramping up our work to ensure Australia benefits from all of the emerging opportunities in the renewable energy and cleantech sectors.

The election of Donald Trump in the US and his administration’s global tariffs have caused political and economic uncertainty but it has also opened the door to the possibility of huge opportunities for Australia. With our unlimited and affordable renewable energy and critical mineral resources, there is a real chance that we could step up to fill the US climate action void and become a global player in the fast-growing cleantech market.

Australia must continue investing in the sector at scale with smart policies and incentives that bring public capital to initiatives that will help us build our decarbonising economy. These include tax credits for advanced manufacturing, strategic funding for investments in the national interest such as value adding in critical mineral mining, requiring local content to spur our domestic sectors and updating out-of-date tax policies and subsidies holding us back.

The ALP, with important interventions by independents and the Greens, passed wide-ranging legislation and initiatives in their last term including:

• Their A$22.7b Future Made in Australia plan, announced in the 2024 budget including Production Tax Credit incentives and First Nation benefits as a key principle;
• Expanding the Capacity Investment Scheme to underwrite renewable energy generation projects;
• $8b in hydrogen and tax incentives and the boost to the Hydrogen Headstart program;
• $7.1b for refining of critical minerals;
• $1.2b in loans + $566m for minerals exploration to 3 critical minerals projects;
• $3.2b for renewable energy tech research in green metals, hydrogen, batteries;
• $1bn Green Iron Innovation Fund;
• $836m for domestic solar manufacturing;
• $549m for battery manufacturing;
• $250m package for green fuels;
• New vehicle efficiency standards;
• Community benefit principles applied with focus on local community investment, supply chains, skills and promoting diverse workforces and secure jobs.

Labor’s election commitment to provide $2.3billion for a Cheaper Home Battery incentive plan if re-elected is also a potential game changing initiative as the central role of batteries in our energy system and economy emerges and costs begin to drop.