Latest reports suggest that the Albanese government is being pushed to provide an extra $100bn over 10 years to boost jobs and reduce emissions including through investments in clean industries and manufacturing of renewable energy components.
The renewable energy sector, community and investor groups are expected to call for the package to respond to massive investment overseas including the US’s Inflation Reduction Act (IRA) tt the Australian Renewables Industry summit in Canberra on Monday unions.
Recall that Labor faced a similar push before its national conference in August, resulting in a substantial increase in ambition in the party’s platform. It now recognises the energy transition is the “most significant economic opportunity since the Industrial Revolution” and commits to “substantial public investment in or underwriting of” critical assets.
The latest push is endorsed by groups including the Australian Council of Trade Unions, Australian Conservation Foundation, Climate Energy Finance, Rewiring Australia and the Smart Energy Council.
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Among other things, the group wants a minimum of $100bn over 10 years for: critical minerals; green iron, steel, and aluminium; advanced manufacturing including solar and wind components and batteries; heat pumps and home energy management; transmission; clean energy exports; zero carbon transport vehicles and fuels; and recycling.
The proposal does not specify the form of investment, which could include a mix of tax credits for advanced manufacturing, off-budget funds such as the National Reconstruction Fund, or direct government spending.
The assistant minister for manufacturing, Tim Ayres is expected to address the summit. Stakeholders are lobbying the climate change and energy minister, Chris Bowen, ahead of decisions on further clean energy investments to be included in the mid-year economic and fiscal update.
In his reaction, the Smart Energy Council chief executive, John Grimes, said that Australia was “standing at a crucial juncture in our nation’s history”.
“Our world-leading resources and renewable energy potential provide the opportunity for Australia to become a driving force in the global green economy while driving down emissions in line with the science to maintain a safe climate,”he said. “But without significantly greater investment, we simply won’t be able to build the industries of the future, reduce emissions, create jobs or strengthen national prosperity and social equity.”
Story was adapted from the Guardian.
