The Australian government is set to introduce legislation that will implement production tax incentives for renewable hydrogen and critical minerals to encourage investments in these sectors. The proposed law will provide a 10% tax incentive for processing and refining costs of 31 critical minerals from the financial year ending in June 2028 until the 2039-2040 financial year, for a maximum of 10 years per project. Additionally, for renewable hydrogen production, there will be a tax incentive of A$2 per kilogramme of renewable hydrogen produced during the same period. Treasurer Jim Chalmers highlighted that this legislation aims to offer investors clarity and certainty to invest in Australia's capacity to enhance the value of its natural resources, ultimately leading to the production of more affordable and environmentally friendly energy. These incentives will be granted once projects become operational and start generating hydrogen or processing critical minerals used in various products like wind turbines, solar panels, and electric vehicles. The initiative reflects a broader global trend where countries are increasingly investing in clean-energy projects to not only drive economic growth but also to compete with nations like China in key sectors such as electric vehicles and semiconductors, which are pivotal for both economic prosperity and national security. The move by the Australian government is expected to support the development of a more sustainable and competitive energy industry in the country.