Australia's Shift Towards Renewable Energy and Hydrogen Certification: A Game-Changer Bill
Key Ideas
  • A bill introduced in Australia aims to establish a Guarantee of Origin (GO) scheme for certifying renewable electricity and the carbon footprint of the emerging hydrogen industry.
  • This legislation, part of the Future Made in Australia package, is designed to incentivize new industries by allowing businesses to verify and market their low-emissions products effectively.
  • The GO scheme aligns with international standards, promoting Australian exports and boosting local manufacturing while also contributing to the growth of clean energy industries.
  • In addition to the GO scheme, a renewable electricity guarantee of origin (REGO) will replace the Renewable Energy Target framework, ensuring the transparency and traceability of renewable electricity production in Australia.
A bill has been introduced in Australia to implement a Guarantee of Origin (GO) scheme aimed at certifying renewable electricity and the carbon footprint of the emerging hydrogen industry. The GO scheme is part of a broader $22.7 billion Future Made in Australia package, with the goal of encouraging new industries by providing a framework to track and verify emissions across products' lifecycles. This scheme is intended to support eligibility under hydrogen production tax incentives that are awaiting parliamentary approval. Assistant Minister for Climate Change and Energy, Josh Wilson, highlighted that the GO scheme will create opportunities for Australian businesses to validate clean products and market their low-emissions credentials effectively. Furthermore, the bill includes provisions for a renewable electricity guarantee of origin (REGO) to replace the current framework under the Renewable Energy Target, which is set to end in 2030. REGO certificates will ensure transparency in proving the origin of renewable electricity production, safeguarding Australia from penalties in markets that demand low-emission goods. The introduction of these schemes is crucial for Australia's transition towards renewable energy and the establishment of hydrogen as a pivotal element in clean energy industries. The bill also aims to prevent carbon leakage by aligning with international standards and promoting Australian exports while fostering local manufacturing. The Senate Environment and Communications Legislation Committee is set to review the bill and report back to parliament by October 31.
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