Australia's Green Energy Investment Boost in 2025-26 Federal Budget
Key Ideas
  • The 2025-26 Federal Budget allocates $2 billion to the Clean Energy Finance Corporation to invest in renewable power, storage, energy efficiency, and low emissions technology, unlocking a further $8 billion in investments.
  • The budget includes support for green metals like green aluminium and green iron production to transition Australian industries to renewable energy sources.
  • Investments aim to strengthen manufacturing capabilities, support local businesses, and provide tax incentives for hydrogen and critical minerals production.
  • The Australian government's initiatives are seen positively by industry experts and unions, with an emphasis on building a sustainable clean energy manufacturing sector.
The 2025-26 Federal Budget in Australia has earmarked $2 billion for the Clean Energy Finance Corporation to invest in renewable power, storage, energy efficiency, and low emissions technology. This investment is expected to leverage an additional $8 billion in funds, encouraging private sector involvement in projects related to solar, wind, green hydrogen, and electrification. The budget also includes provisions to enhance existing grid infrastructure with $36.9 million and establish a $10 million accelerated connections fund to address grid bottlenecks. Notably, support for green metals such as green aluminium and green iron production has been confirmed, indicating a shift towards renewable energy adoption in Australian industries. The budget also addresses the need for carbon pricing in international trade to further promote sustainable practices. Various stakeholders, including Climate Energy Finance Director Tim Buckley and Climate Council economist Nicki Hutley, have expressed approval of the budget's focus on green initiatives. Additionally, investments in the Whyalla steelworks and the Future Made in Australia program aim to fortify the manufacturing sector and promote local procurement, ensuring the longevity of Australian industries. The budget also allocates significant funding for hydrogen and critical minerals production tax incentives, emphasizing the government's commitment to fostering innovation and sustainability in the energy sector.
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