In response to the passage through the Senate of legislation to provide tax breaks for renewable hydrogen and critical minerals, Australian Conservation Foundation CEO Kelly O’Shanassy said:
“ACF welcomes the passage of legislation to provide targeted tax incentives for renewable hydrogen and eligible critical minerals processing and refining activities.
“Renewable hydrogen and the minerals that are critical for clean technologies like solar panels and electric vehicles are foundations of the rapidly emerging clean global economy.
“The legislation will allow public funds to be directed only to clean forms of hydrogen produced with renewables, not fossil fuel intensive processes that fuel climate change.
“We welcome the adoption of amendments moved by the Greens to prevent public funds being funnelled to uranium mining, which comes with radioactive risks, as well as significant water and waste impacts, and is opposed by First Nations communities.
“Targeted and time-limited tax incentives are a sensible government investment to jumpstart these industries and provide policy certainty for investors and industry. Similar tax incentives have been used in other countries with significant success.
“The growth of clean energy export industries allows Australia to contribute to climate solutions rather than continue to worsen climate change – which is what our coal and gas exports do at present.
“For Australia to be fair dinkum about climate action, the government needs to urgently pivot away from fossil fuel exports because no matter where Australian coal and gas is burned, it adds to worsening heatwaves, bushfires and flooding here at home and overseas.
“The Albanese government continues to give public handouts to coal and gas, instead of reallocating those public resources from fossil fuel subsidies to clean energy exports.
“It is outrageous the $1.9bn subsidy for the Middle Arm gas precinct remains on the books.
“Government subsidies for coal and gas fund climate damage; we urge the government to remain focused on supporting communities and the industries of Australia’s clean energy future – not the fossil fuels that are accelerating unnatural and costly disasters.”
Research co-commissioned by ACF on Australia’s clean energy export potential shows targeted tax incentives are an important intervention to support the long-term growth and competitiveness of clean energy exports.