Australia's Renewables Certification Bill Boosts Hydrogen Industry
Key Ideas
  • A new bill in Australia aims to certify renewable electricity and the carbon footprint of the emerging hydrogen industry, encouraging new industries and clean products.
  • The proposed Guarantee of Origin scheme will verify emissions across a product's lifecycle, aligning with international standards to enhance Australian exports.
  • The legislation also introduces a renewable electricity guarantee of origin to replace the Renewable Energy Target, preventing Australia from market punishments for lacking low-emission commodities.
  • The Senate Environment and Communications Legislation Committee is set to report back to parliament on the bill by October 31, reflecting a positive step towards sustainable energy practices.
The Australian government has introduced a bill to certify renewable electricity and the carbon footprint of the emerging hydrogen industry, signaling a significant move towards sustainable energy practices. The proposed legislation, presented by Assistant Minister for Climate Change and Energy Josh Wilson, aims to implement the Guarantee of Origin (GO) scheme to track and verify emissions across product lifecycles. This scheme is crucial for proving eligibility under hydrogen production tax incentives and promoting clean products in the market. The broader $22.7 billion Future Made in Australia package includes this voluntary scheme to encourage new industries and boost Australian exports. The bill also addresses the risk of carbon leakage by aligning with international standards and introducing a renewable electricity guarantee of origin (REGO) to replace the Renewable Energy Target. This REGO certification will showcase how renewable electricity was produced, preventing Australia from facing penalties in markets seeking low-emission products. Additionally, the legislation is in line with efforts to promote local manufacturing and establish hydrogen as a foundation for clean energy industries, including the production of green iron, steel, and fuels. The introduction of the bill has received positive feedback, highlighting opportunities for Australian businesses to market their low-emission credentials and verify new clean products. The Senate Environment and Communications Legislation Committee is expected to review the bill and report back to parliament by October 31, marking a significant step towards a more sustainable and environmentally conscious energy industry in Australia.
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