The Labor Government’s Federal Budget 2024-25 has been lauded as “the biggest clean energy Budget in Australia’s history” by putting renewables, green metals and critical minerals at the heart of the country’s economic future.
Clean Energy Council CEO Kane Thornton said this year’s Budget demonstrated “resolute and ambitious leadership” by the Albanese Government on the nation’s clean energy transition.
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“The government is doubling down on clean energy, which will deliver lower electricity prices, thousands of jobs in the clean economy and will set Australia up to fulfil its potential as a clean energy superpower,” he said.
Climate Council CEO Amanda McKenzie also described the 2024-25 Federal Budget as a “decisive turn towards Australia’s clean energy future”.
McKenzie said, “Gas and coal are not part of the budget’s vision for a Future Made in Australia, underlining that our next era of prosperity can be built on cleaner foundations. This is an essential signal across our entire economy.
“Building a renewable future and clean industrial base will deliver good jobs and greater prospects for Australians. This is critical to slash climate pollution and protect our kids’ future.
“Both sides of politics should back this vision for Australia.”
The 2024-25 Budget includes:
Power bill relief
Headlining the 2024-25 Federal Budget is a $3.5 billion energy bill relief scheme that aims to alleviate pressure on households and small businesses struggling to manage rising electricity prices. More than 10 million households will receive a rebate of $300 while eligible small businesses will get back $325 on their energy bills throughout the year.
Investment in renewable capacity
The government is unlocking more than $65 billion of investment in renewable capacity through the Capacity Investment Scheme by 2030.
Measures include investing $27.7 million to integrate consumer energy resources like batteries and solar into the grid, while the New Vehicle Efficiency Standard will save Australians around $95 billion at the bowser by 2050 and reduce transport emissions.
Future Made in Australia
The government’s $1.7 billion Future Made in Australia Innovation Fund delivers a 10‑year extension of funding to the Australian Renewable Energy Agency (ARENA) as well as the $44.4 million Energy Industry Jobs Plan and $134.2 million for skills and employment support in key regions.
The Future Made in Australia package establishes time‑limited incentives to invest in new industries. The Hydrogen Production Tax Incentive will make Australia’s pipeline of hydrogen projects commercial sooner, at an estimated cost of $6.7 billion over the decade. This Budget also expands the Hydrogen Headstart program by $1.3 billion.
Green exports
The 2024-25 Budget provides $32.2 million to fast‑track the initial phase of the Guarantee of Origin scheme, focused on renewable hydrogen, and bring forward the expansion of the scheme to accredit the emissions content of green metals and low‑carbon liquid fuels.
The government is also working closely with trading partners to identify opportunities to drive greater supply chain transparency and better market recognition of high environmental, social and governance standards in the critical minerals sector.
Net zero transformation
Australia is committed to reaching net zero greenhouse gas emissions by 2050 and is developing six sector plans covering electricity and energy; transport; industry; resources; agriculture and land; and the built environment.
The Budget continues investment in effective emissions abatement, including through $63.8 million to support emissions reduction efforts in the agriculture and land sector.
The government is also investing $399 million to establish the Net Zero Economy Authority and support the economy‑wide net zero transformation. This Budget also invests an additional $48 million in reforms to the Australian Carbon Credit Unit scheme and $20.7 million to improve community engagement.
Resources and critical minerals
The government is investing $8.8 billion over the decade to add more value to Australia’s resources and strengthen critical minerals supply chains. The Budget establishes a production tax incentive for processing and refining critical minerals at an estimated cost of $7 billion over the decade. It commits up to $1.2 billion in strategic critical minerals projects through the Critical Minerals Facility and the Northern Australia Infrastructure Facility, and pre‑feasibility studies for common user precincts.
This is in addition to $566.1 million to support Geoscience Australia to map all of Australia’s critical minerals, strategic materials, groundwater and other resources essential for the transition to net zero.
Manufacturing clean energy technologies
The government is committing $1.5 billion to manufacturing clean energy technologies, including the $1 billion Solar Sunshot and $523.2 million Battery Breakthrough Initiative. These investments will be delivered by ARENA.
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Strengthening supply chains
To support the delivery of the 82% renewable energy target, the Government has formed the National Renewable Energy Supply Chain Action Plan with states and territories. The Government will invest an additional $14.3 million working with trade partners to support global rules on unfair trade practices and to negotiate benchmarks for trade in high-quality critical minerals.
