Boosting Australian Industry: Accelerating the Development of a Proof-of-Origin Scheme for Renewable Energy
Key Ideas
- The Australian government is fast-tracking the development of a guarantee of origin (GO) scheme for hydrogen and renewable electricity to meet the growing demand for verified renewable energy products.
- The GO scheme will provide digital certificates to track the emissions associated with production, supporting the development of Australia's green industries and offering a competitive advantage to local companies.
- This scheme will initially focus on hydrogen production emissions and later expand to include other green products like sustainable aviation fuel, green metals, biomethane, and biogas.
- The renewable electricity guarantee of origin scheme will replace the Renewable Energy Target (RET) in 2030 and play a crucial role in certifying renewable electricity production and consumption.
The Australian government has announced its plans to expedite the establishment of a proof-of-origin scheme for hydrogen and renewable electricity to assist Australian industries in meeting the increasing demand for verified renewable energy products. This initiative, called the guarantee of origin (GO) scheme, aims to track and verify the emissions linked to these products, granting local companies a competitive edge by providing government-supported certification of the carbon intensity of key green products. Federal Assistant Energy Minister Jenny McAllister highlighted the importance of such schemes in enabling businesses to account for their products' emissions intensity as the world progresses towards decarbonization. The GO scheme will issue digital certificates to demonstrate the product's origin, manufacturing process, and emissions generated throughout its lifecycle. It will also facilitate eligibility for tax credits under the hydrogen production tax incentive introduced in the 2024/25 Federal Budget. Initially focusing on hydrogen production emissions, the scheme will expand to cover low-carbon liquid fuels, green metals, biomethane, biogas, and other clean energy products. Additionally, the renewable electricity guarantee of origin scheme will replace the existing Renewable Energy Target (RET) in 2030. This scheme will issue digital certificates to validate the production and usage of renewable energy. McAllister emphasized the significance of the GO scheme in creating new market opportunities for Australian energy exporters in the global shift towards net zero emissions. The government is currently reviewing feedback from consultations on the scheme's design, with plans to finalize the enabling legislation for its operation by the second half of 2025.
Topics
Certification
Renewable Energy
Green Industry
Economic Opportunities
Carbon Intensity
Government Scheme
Emissions Tracking
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