Post: Budget promotes energy security and a low carbon future

Budget promotes energy security and a low carbon future

The government has unveiled its Budget, which it said “lays the foundations for a stronger future by taking further steps to help Australia capitalise on the transformation to cleaner, cheaper energy and promote energy security.”

Unveiled on 9 May, the second Budget of the Albanese Government set out a number of measures, which it said will support the Australian resources sector to continue “to grow national prosperity, supports jobs and opportunities and drives the global transformation to net zero” and to allow Australia to become “a renewable energy superpower.”

This Budget accelerates investment in renewable energy through the Capacity Investment Scheme, which will unlock over $10B of investment and $38.2M is being provided to establish a Guarantee of Origin scheme to underpin markets for green energy, including hydrogen and other low emissions products. The government is also providing $46.5M to the Australian Energy Regulator to regulate energy markets and protect consumers through the transformation and a Net Zero Authority will be established to facilitate economic development and diversification and help smooth the changes as Australia moves to a clean energy economy.

This Budget leverages $12B of the government’s $20B investment in Rewiring the Nation to transformational transmission projects, including:

• $1B in Tasmania’s Battery of the Nation projects
• $1.5B towards Renewable Energy Zones and offshore wind in Victoria
• $4.7B to unlock critical transmission in New South Wales

In addition, a Small Business Energy Incentive has been announced that will help businesses save on their power bills through smarter energy use. This is in addition to the $1.3B investment in the Household Energy Upgrades Fund.

Other Budget funding includes:

• $12M for a review of the environmental management regime for offshore petroleum and greenhouse gas storage activities, with a particular focus on consultation, including with First Nations Australians. The review will examine opportunities for regulatory and administrative certainty and efficiency for carbon capture and storage projects.
• $6.7M to develop a Future Gas Strategy to support Australia’s energy system to reach 82 per cent renewables by 2030 and become cleaner, cheaper and more reliable while maintaining our international reputation as a trusted energy supplier to the region.
• $14.3M to partner with the Queensland Government, supporting research and development into reducing emissions in Australia’s energy resources sector.
• $4.5M to develop a Roadmap for Establishing a Decommissioning Industry in Australia. The roadmap will identify ways Australia can benefit from the $60 billion projected expenditure, any repurposing, recycling and waste disposal pathways for decommissioned infrastructure, and opportunities to re-skill oil and gas workers for an emerging decommissioning industry.