Australia set to join global clean energy subsidy race with new green fund, AFR reports

Credit: REUTERS/Reuters Staff

By Renju Jose and Lewis Jackson

SYDNEY, Feb 16 (Reuters) - Australia plans to unveil a range of financial incentives to drive investment in the local clean energy sector and keep money and talent from being pulled overseas by subsidies in the U.S. and Europe, the Australian Financial Review reported on Friday.

Like countries across the developed world, Australia is responding to the massive raft of clean energy incentives in U.S. President Joe Biden's $430 billion Inflation Reduction Act and the European Commission's Green Deal Industrial Plan.

If Australia has to become a renewable energy superpower, "the government has to be a partner in this, not just an observer," Prime Minister Anthony Albanese will say in a speech later on Friday, according to the story.

"We don't have to go dollar-for-dollar in our spending, but we can go toe-to-toe on the quality and impact of our policies. In all of this, we must be prepared to think big," Albanese will say.

The prime minister's office did not immediately respond to a request seeking comment.

The government scheme is likely to be a combination of subsidies and co-investments, the AFR report said, citing unidentified sources.

Australia on Friday classified opening the way for the crisis-hit industry to access billions of dollars in government support.

The country's nickel sector is facing thousands of job cuts after a jump in Indonesian supply saw prices plunge 40% in a year.

The scheme will be the latest in a series by the centre-left Labor government designed to revive manufacturing or foster new industries, including a A$15 billion ($9.8 billion) National Reconstruction Fund and a fresh injection of A$500 million last year for critical minerals.

($1 = 1.5342 Australian dollars)

(Reporting by Renju Jose and Lewis Jackson in Sydney; Editing by Mrigank Dhaniwala)

((renju.jose@thomsonreuters.com; +61 29171 7126; Reuters Messaging: @renjujose))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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