BREAKING NEWS: Australia’s Future Made in Australia Initiative

The Reimagined Green Economy Plan

By Antony Currie

MELBOURNE, May 16 (Reuters Breakingviews) – Australia has introduced the “Future Made in Australia” initiative, inspired by the U.S. 2022 Inflation Reduction Act. The goal is to boost clean energy manufacturing and achieve net-zero emissions. But is it enough?

Australia’s Green Ambitions

With nearly one-third of its exports being fossil fuels, Australia has room to grow in the green energy sector. The country’s public debt is significantly lower compared to the U.S. and Japan, making it an ideal place to invest in clean energy.

The Investment Plan

Treasurer Jim Chalmers allocated A$23 billion over 10 years for production tax credits for critical minerals and green hydrogen. While this matches the U.S. incentives, it falls short of what research outfits were advocating for.

Room for Improvement

The plan lacks incentives to boost demand for household goods that reduce energy needs, like electric vehicles and solar panels. The upcoming federal election and concerns about inflation are limiting the government’s spending.

Looking Ahead

Despite its efforts, Australia’s “Future Made in Australia” initiative may not be enough to make a significant impact. Will the country be able to catch up with its Western peers in the green energy race?

Follow @AntonyMCurrie on Twitter for more updates.

CONTEXT NEWS

The Australian federal government committed A$22.7 billion over a decade to the initiative, starting in 2027, to boost renewable energy production. The package includes A$13.7 billion in production tax credits for critical minerals and green hydrogen.

($1 = 1.5092 Australian dollars)

Editing by Robyn Mak and Aditya Sriwatsav