Australia's Renewable Energy 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 through the Guarantee of Origin scheme.
  • The legislation is part of a $22.7 billion initiative to promote new industries and increase Australian exports by establishing reliable emission tracking and verification systems.
  • The bill also introduces a Renewable Electricity Guarantee of Origin to support the transition to renewable energy and prevent Australia from facing penalties in global markets for lacking low-emission products.
  • Hydrogen is set to play a key role in Australia's clean energy sector, serving as a critical component in the production of various clean products like iron, steel, ammonia, fertilizers, and fuels.
A bill has been introduced in Australia to establish a certification system for renewable electricity and the carbon footprint of the hydrogen industry, setting the stage for a Senate inquiry. The proposed legislation, championed by Assistant Minister for Climate Change and Energy Josh Wilson, includes the Guarantee of Origin (GO) scheme to validate emissions throughout a product's lifecycle. This scheme is crucial for demonstrating eligibility for hydrogen production tax incentives awaiting parliamentary approval. The bill is part of the larger $22.7 billion Future Made in Australia initiative aimed at fostering new industries. It is designed to help Australian businesses showcase their low-emission products and boost exports by adhering to international standards. The bill also addresses the risk of carbon leakage as other nations implement carbon pricing measures. Additionally, the legislation introduces a Renewable Electricity Guarantee of Origin (REGO) to support the shift towards renewable energy and safeguard Australia's competitiveness in markets that prioritize low-emission goods. Hydrogen is anticipated to be a cornerstone of the country's clean energy future, supporting the production of green iron, steel, ammonia, fertilizers, and fuels. The Senate Environment and Communications Legislation Committee is set to deliver its findings on the bill by October 31, reflecting Australia's commitment to sustainability and innovation.
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