Government funding, News, Sustainability

2024/25 Budget unveils new investment into clean energy

The Federal Government has announced $22.7 billion of new funding initiatives under the Future Made in Australia Act strategic framework, some of which focus on clean energy.

Among industries that have been targeted by the Budget are renewable hydrogen and clean energy manufacturing, including battery and solar panel supply chains.

Director of Climate Energy Finance Tim Buckley said it was excellent to see the commitment to Australia as a “clean, green superpower.”

“Tonight’s budget shows a government that understands both this imperative to act to transition Australia to its future as a clean, green superpower and the opportunity cost and risks of not acting to secure Australia’s place in the new net zero world economy, said Buckley.

Clean energy initiatives apart of Treasurer Jim Chalmers’ 2024-2025 Federal Budget include:

  • A new $7 billion critical minerals value-adding Production Tax Credit (PTC).
  • $1 billion to Solar SunShot and $466 million to PsiQuantum.
  • $3.2 billion in additional funding for ARENA technology commercialisation.
  • A $6.7 billion hydrogen production tax incentive and $1.3 billion of additional hydrogen headstart funding.
  • $209m into the Net Zero economy authority.
  • $168m to prioritise approval decisions for renewable projects of national significance.
  • $500m Battery Breakthrough Initiative.
  • $179m in additional employment & skills supports for regions.
  • $91m to accelerate the development of the clean energy workforce and to expanding the New Energy Apprenticeship Program.
  • $56m in Building Women’s Careers program.
  • $777m for strong First Nations workforce participation & development.
  • The implementation of the Future Made in Australia Act (FMIA) will be guided by a targeted framework.

Buckley said the budget is reflective of Australia’s response to a global energy transition that is speeding up.

“The world is in a rapidly accelerating technology, trade and finance decarbonisation race to the top as the global energy transition speeds up.

This is Australia’s biggest investment, employment, and export opportunity in a century to reorient from our fossil fuel-reliant past, but we needed this budget to respond strategically, proportionally and fast, which it has done,” said Buckley.

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