PM maps out plan to incentivise clean energy investment

Australia will spend hundreds of millions of dollars to spur clean energy investment and make tax changes to turn the nation into a renewables superpower.

The government will undertake a comprehensive exercise to deliver a map of what is located under Australia’s soil and seabed to pinpoint locations of critical materials needed for clean energy.

Prime Minister Anthony Albanese said the landmark $566 million 10-year funding for the project will be allocated in next week’s budget.

Led by government agency Geosciences Australia, the plan will deliver data, maps and tools to the resources industry, illuminating areas of critical mineral and rare earth deposits.

It will also identify locations in offshore areas of the nation for carbon capture and storage and possible sites for clean hydrogen projects.

“A future made in Australia relies on providing confidence to investors, and supporting those who take on the task of exploring our vast continent,” Mr Albanese said.

“The world needs more of these resources - and our government is going to help Australia find more.”

The federal budget will also deliver further changes to the tax system in an effort to support these goals, Treasurer Jim Chalmers said.

“There will be tax reform: there’ll be income tax reform, and some additional measures which recognise that the tax system can be a good way to incentivise the kind of private investment that we want to see in the future of our economy and in a future made in Australia,” he told ABC radio.

The prime minister said the mapping project will give communities greater certainty with infrastructure planning and environmental assessments, and will support the agricultural sector while creating a “sustainable pipeline of projects”.

Regional and Indigenous communities and farmers will be supported to gain a better understanding of how to manage land and water resources and be fully informed about potential mining projects.

“As the emissions footprint of technology becomes more important to buyers, being able to power refining, processing and manufacturing with clean energy becomes more valuable for sellers,” Mr Albanese said.

Using these critical minerals to generate clean energy can turn Australia into a “renewable energy superpower”, the prime minister added.

Resources Minister Madeleine King said the map funding will support resources companies to find the minerals needed to power the economy and build technology to reduce emissions.

“The road to net zero runs through Australia’s resources sector,” she said.

The government will also pump in an extra $100 million to hire more staff to review business proposals for renewable and critical mineral projects.

Mr Albanese described the current environmental approval processes as “far too slow”.

“In this time of fiercely contested global opportunity, our government is not going to sit on the sidelines and watch the game unfold,” he said.