Australia's Renewable Energy Legislation for Hydrogen Industry Growth
Key Ideas
  • A bill has been introduced in Australia to certify renewable electricity and the carbon footprint of the emerging hydrogen industry, encouraging new clean energy industries.
  • The Guarantee of Origin (GO) scheme will track and verify emissions across a product's lifecycle, supporting eligibility for hydrogen production tax incentives.
  • The scheme aligns with international standards, aiming to increase Australian exports and promote more local manufacturing of clean products.
  • The Renewable Electricity Guarantee of Origin (REGO) will replace the Renewable Energy Target framework to ensure proof of renewable electricity production and prevent market penalties.
The Australian government has introduced a bill to establish a certification scheme for renewable electricity and the carbon footprint of the growing hydrogen sector. The proposed legislation, presented by Assistant Minister for Climate Change and Energy Josh Wilson, aims to track and verify emissions throughout a product's lifecycle. This initiative includes the Guarantee of Origin (GO) scheme, designed to qualify for hydrogen production tax incentives. The voluntary program is part of the broader $22.7 billion Future Made in Australia package, promoting new industries and allowing businesses to showcase their low-emission products. The GO scheme is intended to align with international standards, ultimately fostering Australian exports and boosting local manufacturing practices. This move comes as hydrogen emerges as a key component in advancing clean energy industries, serving as a feedstock for green iron and steel, ammonia, fertilizers, and fuels. Additionally, the legislation introduces the Renewable Electricity Guarantee of Origin (REGO) to replace the expiring Renewable Energy Target framework by 2030, ensuring transparency in renewable electricity production. The scheme's introduction aims to prevent carbon leakage and align with global efforts to curb emissions. The impending Senate inquiry will evaluate and report on the bill by the end of October. This new framework signifies a positive step towards a more sustainable and competitive hydrogen industry, reinforcing Australia's commitment to clean energy and meeting international emission standards.
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