The Albanese government has unveiled a $5 billion Net Zero Fund to accelerate industrial decarbonisation and scale up low-emissions technologies across heavy industries, backing up an ambitious emissions target set on Thursday.
The industry support will be delivered through the National Reconstruction Fund and offer capital for large industrial facilities to invest in new equipment, technologies and processes.
According to the government, the aim is to ensure these facilities remain competitive while cleaning up to preserve jobs in regional and outer-suburban areas.
Industry consultation on the design of the Net Zero Fund will begin within days, focusing on how to unlock private investment at scale and coordinate with the Clean Energy Finance Corporation.
The initiative forms part of the government’s new Industry Sector Plan, which sets out pathways for reducing emissions in industry and waste while maintaining economic competitiveness.
The new fund adds to the suite of policies under the $22.7 billion Future Made in Australia agenda, including support for green iron, green aluminium and battery technologies.
It also complements the Capacity Investment Scheme, expected to deliver more than 40GW of additional renewable generation by 2030, and the Net Zero Economy Authority that was established to support communities managing the transition.
The fund was announced Thursday after Prime Minister Anthony Albanese set an emissions reduction target for 2035 of 62 to 70 per cent on the 2005 baseline, giving Australia abetter shot at net zero by 2050. It also followed dire warnings in Australia’s first Climate Risk Assessment report earlier this week.
Minister for Industry and Innovation and minister for Science Tim Ayres said the Net Zero Fund will “deliver targeted investments that bolster the transition to less carbon-intensive manufacturing and production processes, including at some of Australia’s most economically and strategically important industrial facilities.”
He added that the Climate Risk Assessment report “clearly shows what’s at stake if we don’t provide the right kind of leadership that Australia needs at this critical juncture”.
Mr Ayres described the Net Zero Fund as “a vital component of the Albanese Labor Government’s industrial strategy, which already represents the biggest pro-manufacturing investment in Australian history”.
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