Peak energy, business, union, community and investor groups have welcomed Treasurer Jim Chalmer’s latest commitment on renewable energy investment today but have urged the Government to urgently work with them on new policy approaches to capitalise on opportunities now before it’s too late.
In a key speech today, the Treasurer prioritised the need for a uniquely Australian response that complements the ~$1 trillion Inflation Reduction Act (IRA) – the landmark climate and energy policy that is turbocharging new clean energy investment and jobs growth in the United States.
The Treasurer announced a new approach to Government industry policy so that Australia’s energy transformation succeeds on its own terms and contributes to a future made here.
In particular, the Treasurer said new renewable energy policies will be developed to better reflect competitiveness, distribution of opportunity, resilience and national security underpinned by the strong climate and energy goals.
This policy approach is what the alliance members have been calling for since the IRA commenced, along with a $100 billion Australian Renewables Industry Package commitment to secure extraordinary economic opportunities for the nation.
The ten-year $100 billion package proposal is endorsed by groups including the Australian Conservation Foundation, Australian Council of Trade Unions, Clean Energy Council, Climate Action Network Australia, Climate Energy Finance, First Nations Clean Energy Network, New Energy Nexus, Rewiring Australia and the Smart Energy Council.
The alliance members today called on the Government to work in partnership with them on the new policy approaches across the initial priority areas announced by the Treasurer: Refining and processing critical minerals; Supporting manufacturing of generation and storage technologies, including batteries; Producing renewable hydrogen and its derivatives like ammonia; and forging green metals.
The peak energy, business, union, community and investor groups have unique insights and relevant sector experience that will help to dramatically speed up the new policy development process and outcomes for the nation.
The alliance members are committed to working with Government as quickly as possible on the new policy approaches so that Australia can become a renewable energy superpower faster.
The alliance members also believe a $100bn Australian Renewables Industry Package is the only way to really achieve Australia’s future security and prosperity as many other countries have made similar commitments.
Australian Renewable Industry Package elements
- Cornerstone funding – a minimum of $100 billion in new federal government investment and spending over ten years. This could support projects and products including green iron and steel; green alumina and aluminium; processing and refinement of critical minerals and energy transition metals; advanced manufacturing including solar and wind componentry, electrolysers, batteries and grid control technology as well as end-consumer appliances such as heat pumps and home energy management systems; transmission infrastructure including cabling and towers; clean energy exports (renewable energy and green hydrogen); zero carbon transport vehicles and fuels; expanded domestic recycling and reuse aligned with circular economy principles; and clean energy education, training and services.
- Built-in community benefits – embed social, labour and environmental benefits as core components of new renewable industries. These should incorporate free, prior and informed consent from First Nations communities and co-ownership; place-based precinct co-development with local communities; fair labour standards that guarantee a just transition, well-paid, safe, secure jobs with best practice training and apprenticeship; best practice ESG and improved environmental outcomes linked to accelerated assessments and decisions; embedded circular economy principles; better coordination across communities, industry, unions, investors and all levels of government; and community benefit sharing.
- Policy reforms – to leverage cornerstone funding and unlock Australia’s potential, including tax credits, contracts for difference and public sector procurement; revised risk and rate-of-return rules for public investment vehicles to fill project finance gaps; support for research, development and demonstration of net zero tech, including support for local innovation and start-ups; establishment of national critical mineral reserves; public ownership or public equity investment in common-use infrastructure; expanded and improved renewable energy target and energy market reform strategies; national trade desk and trade negotiation support to increase demand for clean products; reformed planning approvals for nature positive projects and socialised benefit via community profit sharing; and public ownership/equity where appropriate.
- A mid-term target – at least $300 billion annual clean export revenue to be achieved by 2035 and approximately 700,000 direct jobs mainly in rural and regional Australia.
The alliance members say the proposal will build a foundation on which the next era of economic prosperity can be delivered for our nation over the coming decade, creating new jobs, keeping Australian resources and potential onshore and building new industries while doing what is right for our people and planet.
