Australia is set to announce a series of financial measures aimed at bolstering the local clean energy industry, in an effort to prevent the drain of resources and talent to overseas markets, energized by substantial subsidies in the United States and Europe.
This move comes in response to significant clean energy initiatives like U.S. President Joe Biden’s $430 billion Inflation Reduction Act and the European Commission’s Green Deal Industrial Plan, as reported by the Australian Financial Review.
Prime Minister Anthony Albanese is expected to highlight the government’s active role in this transition in an upcoming speech. “If Australia has to become a renewable energy superpower, the government has to be a partner in this, not just an observer,” Albanese will emphasize, advocating for ambitious and impactful policy making over matching foreign spending dollar-for-dollar.
The plan, which involves a mix of subsidies and co-investments, aims to facilitate access to billions in government support for the crisis-affected industries, including the nickel sector, which has seen a drastic 40% price drop due to increased supply from Indonesia.
This initiative is part of a broader strategy by the Labor government to rejuvenate manufacturing and nurture emerging industries, which includes a A$15 billion National Reconstruction Fund and an additional A$500 million allocated last year for critical minerals development.
