Jim Chalmers. Source: AAP Image/Jono Searle
A “new generation of prosperity” will be unlocked with a plan to boost investment in renewable energy and critical minerals being brought to parliament.
The federal government will introduce laws for its signature Future Made in Australia policy on Wednesday.
The strategy, which will spend more than $22 billion over 10 years, will look to safeguard Australia’s control over its resources and revive the country’s manufacturing base.
It will also seek to invest in emerging industries in the renewable energy sector as the global economy shifts towards net-zero emissions.
Treasurer Jim Chalmers said the proposal would make the most of Australia’s potential in the years ahead.
“The legislation that I’ll introduce today is about a new generation of prosperity,” he told Sky News on Wednesday.
“It’s about good, secure, well-paid jobs.”
Dr Chalmers said the bill would unlock private sector investment in renewable energy that would enable Australian workers and communities to benefit from the global transition to net zero emissions.
Under the laws setting out the strategy, a national interest framework would be set up, which will oversee what projects would be funded.
Any project receiving funds would also have to ensure that jobs would be safe and well paid, engage with the communities, strengthen supply chains and develop skilled and inclusive workforces.
An innovation fund will be set up to support emerging technologies such as green metals and manufacturing in clean energy.
Independent analysis would be carried out by the Treasury to determine which sectors of the economy would benefit the most from the investment.
Deputy Opposition Leader Sussan Ley accused the government of running an advertising campaign instead of a proper plan for manufacturers, claiming insolvencies in the sector had tripled since Labor came to office.
“How can you have a future made in Australia, when you can’t keep the lights on today?” she said.
Dr Chalmers said the Coalition’s alternative, building a nuclear energy industry, would only push power prices higher.
He argued the extra funding the Future Made in Australia policy would inject into the economy would not exacerbate inflation as it would be phased in gradually.
“It’s a medium-term and long-term plan to make Australia an indispensable part of the global net zero transformation by leveraging our industry, our energy, our resources and our strengths and skills and our attractiveness as an investment destination,” Dr Chalmers said.
The government will need the support of the Greens and crossbench to pass its reforms, with the Coalition already signalling it will oppose the plan.
The Greens said they would want to ensure funding included in the plans would not finance new coal and gas projects.
This article was first published by AAP.
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