Future Made in Australia reforms enter Parliament
The government has introduced its package of reforms aimed at helping Australia seize opportunities from the global shift to net zero.
The Labor government introduced the Future Made in Australia (Omnibus Amendments No. 1) Bill 2024 into the lower house yesterday, which implements key elements of its Future Made in Australia agenda.
Prime Minister Anthony Albanese said the bill will help unlock private sector investment to build a "stronger, more diversified and more resilient economy powered by renewable energy".
The bill expands the role of Export Finance Australia to allow it to make domestically focused investments that align with national interest priorities where support is not available through existing funds and programs.
EFA will have two new functions under the legislation: to encourage and facilitate eligible activities that support Australia’s economic resilience and security, and to encourage and facilitate activities that support the net-zero transformation.
The bill also expands the responsibilities of the Australian Renewable Energy Agency (ARENA), an independent statutory authority that will be responsible for administrating key avenues of support under the Future Made in Australia reforms, including the Innovation Fund and other announced programs.
ARENA currently provides financial assistance to renewable energy researchers, innovators and developers. It also provides advice and shares knowledge about renewable energy technologies.
"ARENA is well placed to support and facilitate the transformation to a net zero economy through its role providing financial assistance to Australian industries," the explanatory memorandum to the bill explained.
"For example, supporting local manufacturing and production of renewable energy technologies eases pressures on supply chains and creates new opportunities in clean energy industries, including local and diversified job opportunities."
The government said changes under schedule 2 of the bill would help provide ARENA with the right governance, accountability and resourcing arrangements to fully support the transition to net zero and help position Australia as a renewable energy superpower.
As part of the reforms, the government will allocate $6 billion in statutory funding for ARENA for renewable energy investments over the next 15 years.
Minister for Climate Change and Energy, Chris Bowen, said a large amount of this will be used to establish the Future Made in Australia Innovation Fund to commercialise innovative technologies critical to net zero in areas like green metals, batteries, low carbon liquid fuels, and clean technology manufacturing.
"Funding will also go to establishing the Solar Sunshot and battery breakthrough initiatives and providing long-term funding certainty for AREA's ongoing priorities," Minister Bowen said.
Treasurer Jim Chalmers said the bill would help "secure Australia's place in a shifting global economic and strategic landscape".
Chalmers said the National Interest Framework established under the bill will help Australia identify sectors where it has a sustained comparative advantage in the new net zero economy, or an economic resilience and security imperative to invest.
"The framework will be supported by transparent, Treasury‑led analysis of the extent that sectors align with the National Interest Framework," he said.
