Australia's Future Made in Australia Legislation Boosts Renewable Energy Production
Key Ideas
- Future Made in Australia legislation and its Guarantee of Origin scheme support low-emissions products, enhancing competitiveness in global markets.
- Two tax incentives, including a Hydrogen Production Tax Incentive and a Critical Minerals Production Tax Incentive, aim to boost renewable energy and critical minerals projects.
- The Guarantee of Origin scheme, set to launch in 2025, is crucial for driving investment in renewable energy, positioning Australia as a renewable energy superpower.
- The Australian Hydrogen Council praises the GO scheme and the hydrogen production tax incentive, highlighting their importance for Australia to lead in hydrogen production.
The Australian Government has passed the Future Made in Australia legislation and two supporting bills to establish the voluntary Guarantee of Origin (GO) scheme. This scheme will certify low-emissions products, supporting renewable electricity and helping Australian producers compete in emerging markets. The legislation introduces two tax incentives: a Hydrogen Production Tax Incentive of $2 per kilogram of renewable hydrogen produced between 2027-2028 and 2039-2040, and a Critical Minerals Production Tax Incentive worth ten per cent of relevant processing and refining costs for critical minerals. Climate Change and Energy Minister Chris Bowen highlighted the importance of the GO scheme in driving investment for Australia's clean energy transition. The Australian Hydrogen Council CEO, Dr. Fiona Simon, welcomed the bill passage, emphasizing the significance of the GO scheme and the hydrogen production tax incentive for Australia's industry competitiveness and meeting global expectations. The industry anticipates benefiting from the certainty provided by these incentives for various hydrogen projects across the country.
Topics
Production
Renewable Energy
Legislation
Economic Growth
Tax Incentives
Industry Support
Clean Energy Transition
Latest News