Australian renewables association Clean Energy Council has called on the Australian Government to respond to the US Inflation Reduction Act (IRA).
Australia risks losing thousands of renewable jobs and international investments due to the increased interest in the US market in light of the IRA, which includes US$369 billion of clean energy and climate change initiatives, said Kane Thornton, chief executive at Clean Energy Council.
“Australia has a prime opportunity to become a clean energy superpower, but the brightest minds and the biggest wallets are now looking to the US for their best opportunity,” said Thornton.
The country’s inaction could potentially damage Australia’s competitiveness across all industries for decades to come, added Thornton.
Europe recently responded to the IRA with its own package of measures to boost its clean energy sector, the Green Deal Industrial Plan.
Since its victory in the general election in May 2022, the Australia Labour government increased its renewables penetration target in the National Electricity Market to 82% by 2030 and aims to reach 26GW of installed renewable capacity by the end of the decade.
Moreover, the government’s commitment to accelerate the installation of renewables came with A$25 billion (US$17.4 billion) of federal budget in clean energy investments for the next four years, of which A$20 billion for two major transmission line projects.
However, the renewables association worries that the funding and institutional support will not be sufficient to help Australia stay at a competitive level with other key players in renewables.
Ahead of the May Budget, the Clean Energy Council has called on the Australian government to take appropriate actions with a strategy that would make the country a global energy superpower.
“Vast economic packages that prioritise the build-out of renewable energy and storage are exactly what’s needed to decarbonise the planet. Australia is at risk of being left behind without a significant commitment in the May Budget,” said Thornton.