Federal Labor’s plan to set the Australian economy on a decarbonised “path to prosperity,” including as part of the booming global solar and battery supply chains, has been set before parliament with the introduction of the Future Made in Australia Bill.
The bill, introduced on Wednesday, seeks to write into law the strategies guiding the Albanese government’s $22.7 billion push to make the most of the huge economic opportunities presented by the shift to renewable energy and the race to curb dangerous climate change.
The broad-ranging legislation takes in the $1.5 billion set aside for manufacturing clean energy technologies in Australia, including the $1 billion Solar Sunshot, announced in March, and the $523.2 million Battery Breakthrough Initiative, both led by Arena.
The Bill would also set in place a national interest framework to oversee what projects would be funded and ensure those projects produce safe and well paid jobs, engage with communities, strengthen supply chains and develop skilled and inclusive workforces.
Independent analysis would be carried out by the federal treasury to determine which sectors of the economy would benefit the most from investment.
“The government recognises that the best opportunities for Australia and its people lie at the intersection of industry, energy, resources, skills and our ability to attract and deploy investment,” prime minister Anthony Albanese and federal treasurer Jim Chalmers said in a joint statement.
“The Future Made in Australia package improves our investment environment and encourages new industries that put us on a path to net zero and strengthen our economic resilience.”
The proposed legislation comes at a critical juncture in Australia’s energy debate, with the Albanese government forging ahead with the policies that are said to have got it elected back in May 2022, while the federal opposition commits to anything-but-renewables, packaged up as a plan for nuclear power.
“The world is changing with or without Australia,” Chalmers told parliament on Wednesday.
“Amidst this churn and change our path to prosperity is clear. Australia has been dealt the most incredible set of cards to make ourselves the primary beneficiaries of the net zero economy.
“We know just pumping capital into the transformation won’t be enough if we don’t pay attention to how we deploy it,” Chalmers said.
“These principles will be our lodestar to help ensure our people and our economy are the primary beneficiaries of change, and we will consult on the details of how the principles and plans will be put into practice.”
The bill is by no means guaranteed safe passage through parliament, however. The government will need the support of the Greens and cross bench to pass its reforms, with the Coalition already signalling it will oppose the plan.
The Greens have said they will seek to ensure funding included in the plans does not finance any new coal and gas projects.
The renewable energy industry, meanwhile, has welcomed the Bill as a major milestone and will be hoping it can get across the line.
“The world is decarbonising and it is not an option to sit on the sidelines,” said Smart Energy Council acting CEO Richie Merzian in a statement on Wednesday.
“A Future Made In Australia is a clean, stable and prosperous future that will deliver for workers, consumers, manufacturers, miners and our trade partners as the nation shifts from exporting the climate problem of fossil fuels to the climate solutions.
“The package will foster a new wave of Australians industries in renewables, batteries, minerals and hydrogen, to meet the growing global demand for climate solutions.”
Climateworks Centre’s Kylie Turner says the Future Made in Australia framework could function as a national “net zero filter” coordinating industry decisions and funnelling investment in the right direction.
“It’s precisely the kind of coordination the nation needs to make the most of its once-in-a-lifetime green economy transformation,” Turner said on Wednesday.
“And [it] lands at a time when the world is racing towards a future green economy.
“If done well, Future Made in Australia could be the running start the nation needs to gain the benefits from our comparative advantages in world class solar and wind resources, critical minerals, a skilled workforce, established export relationships and the sheer size of our landmass and coastline to host large scale projects.”
ACTU president Michele O’Neil said the government strategy would be a boost for workers.
“By fulfilling our potential as a world leader Australia can not only support local jobs and the reduction of Australia’s climate pollution, but also contribute to cutting the world’s climate pollution,” she said.
With some reporting from AAP
