CREATING A RENEWABLE ENERGY SUPERPOWER

AUSTRALIAN MINING BREAKS DOWN THE FEDERAL GOVERNMENT'S FUTURE MADE IN AUSTRALIA LEGISLATION, AND HOW THE RESOURCES SECTOR FITS IN AS “THE HEART” OF THE POLICY.

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With a plethora of critical minerals needed for decarbonisation beneath its surface, Australia is positioned to play a crucial role in the ongoing global energy transition.

In recognising this, the Federal Government announced its ‘Future Made in Australia’ plan in April 2024.

When unveiling the plan for the first time at the Queensland Media Club, Prime Minister Anthony Albanese said the Federal Government is committed to enticing more investment in renewable energy and critical industries.

“In this time of transformative opportunity, (the Federal) Government will not be an observer or a spectator – we will be a participant, a partner, an investor and enabler,” Albanese said.

“We will be guided by three principles. First, we need to act and invest at scale. Second, we need to be more assertive in capitalising on our comparative advantages and building sovereign capability in areas of national interest.

“Thirdly, we will continue to strengthen and invest in the foundations of economic success.”

But what does ‘Future Made in Australia’ mean, and how has the nation’s resources sectors reacted to the plan?

The agenda

The Future Made in Australia policy is essentially Australia’s response to the US’ Inflation Reduction Act (IRA), considered to be the largest climate investment in US history.

The IRA encourages innovation by giving firms various demandand supply-side incentives to invest in developing and deploying clean energy technologies. It includes a $US30 billion manufacturing production tax credit that subsidises the downstream processing of critical minerals.

The Future Made in Australia Act 2024, which was granted royal assent on December 10, 2024, acts in a similar manner, establishing a National Interest Framework to guide the identification of priority industries and investments in the national interest.