The Government will spend $22.7 billion over the next decade to turn Australia into a “renewable energy superpower”, in a plan formally called ‘Future Made in Australia’ (FMIA).
The funding supports a plan which will be formalised and passed in legislation.
Here’s everything you need to know about FMIA.
Renewables
Australia is in the process of transitioning from relying on fossil fuels, like coal and gas, to renewables, such as solar and wind.
The Government has legislated a target for 82% of Australia’s energy to be generated by renewables by 2030. Renewables accounted for nearly 40% of total energy use in 2023, according to data from the Clean Energy Council.
Australia has also legislated a goal of net zero emissions by 2050, where greenhouse gas emissions produced and taken out of the atmosphere are balanced.
Infrastructure
The Government says Australia needs more renewable energy infrastructure to support the transition to net zero.
This includes boosting the production of solar panels, batteries, and wind turbines, to harness renewable sources of energy.
As a result, the Government has developed the FMIA plan as a new strategy to support its climate goals, by boosting manufacturing and green energy infrastructure.
FMIA
Prime Minister Anthony Albanese announced the FMIA plan in Queensland last month.
In the Federal Budget, the Government outlined its nearly $23 billion plan for the next decade. Some of the FMIA funding covers incentives for industries to build and develop green energy technologies.
The Government has flagged it would introduce the FMIA legislation later this year, but hasn’t confirmed a specific date.
Overseas
The FMIA follows several green energy programs around the world.
For example, part of the U.S. Inflation Reduction Act included approximately hundreds of billions of dollars on clean energy.
The European Union’s Green Deal Industrial Plan is also aimed at accelerating renewables manufacturing across Europe.
Reaction
Peak industry, union and advocacy groups have largely welcomed the FMIA plans.
Climate Council CEO Amanda McKenzie also said it will help “tackle climate pollution, generate clean jobs, and ensure a brighter future”.
The Climate Council urged the Government to “seize the decade and make the most of our abundant clean energy resources and deep manufacturing know-how.”
Opposition
Shadow Treasurer Angus Taylor said he supports a “strong” Australian manufacturing industry.
However, he said he opposes the FMIA’s plans to directly subsidise the energy industry’s transition to renewables.
If the Coalition opposes the legislation, which hasn’t been introduced yet, the government would need support from the Greens and some of the crossbench to pass the FMIA.
