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Australia invests US$15bn in key industries to move to net-zero

The Australian Government has announced a AUD22.7bn (US$15bn) Future Made in Australia package to facilitate investments in key industries and realise the country's potential to become a renewable energy superpower and to reach net zero greenhouse gas emissions by 2050. It aims to identify priority industries and help invest in domestic manufacturing and renewable energy to reduce its reliance on foreign suppliers for key technologies. 

The 2024-2025 budget sets the AUD1.7bn (US$1.1bn) Future Made in Australia Innovation Fund and delivers a 10‑year extension of funding to the Australian Renewable Energy Agency. The package also expands the Hydrogen Headstart program by AUD1.3bn (US$870m) and announces the Hydrogen Production Tax Incentive to make Australia’s pipeline of hydrogen projects commercial sooner, at an estimated cost of AUD6.7bn (US$4.5bn) over the decade. Around AUD8.8bn (US$5.9bn) will be invested to strengthen critical minerals supply chains (including a tax incentive for processing and refining critical minerals) and AUD1.5bn (US$1bn) in manufacturing clean energy technologies. The package includes AUD134.2m (US$90m) to better prioritise approvals for renewable energy projects of national significance, AUD17.3m (US$11.5m) to mobilise private sector investment in sustainable activities and AUD32.2m (US$21m) to fast‑track the initial phase of the renewable hydrogen focused Guarantee of Origin scheme. 

Overall, Australia is unlocking more than AUD65bn (US$43bn) of investment in renewable capacity through the Capacity Investment Scheme by 2030. These investments are expected to boost emerging critical minerals and clean energy industries and to ease access for investors in the sector.

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