The Australian Conservation Foundation has welcomed a federal government plan for a $2 billion production credit to encourage the decarbonisation of aluminium smelters, primarily by helping them shift to renewable electricity.
“The aluminium sector has been a cornerstone of regional communities like Portland and Tomago for decades, but smelting is an energy-hungry activity that contributes significantly to the climate crisis,” said ACF’s climate and energy program manager Gavan McFadzean.
“Australia’s four aluminium smelters generate around 16 million tonnes of climate-heating emissions a year – and that’s for their electricity use alone.
“Australia’s smelters are high emitters because most are powered by coal, making them uncompetitive in a low carbon global economy.
“Green aluminium exports have the potential to contribute to Australia’s economy for generations, unlike coal and gas exports that deliver very little for communities while damaging the climate.
“In Gladstone in central Queensland, ACF has worked with the local community to advocate for a transition pathway for heavy industry, including Rio Tinto’s Boyne Island smelter.
“We welcome the Albanese government’s decision to back this vision for an aluminium sector powered by the wind and the sun through a strategic investment to support the industry’s shift to renewable powered processes.
“This announcement should help cut Australia’s emissions further and faster this decade.
“But to be consistent about climate action, the Albanese government must stop trying to walk both sides of the street – supporting clean export and manufacturing initiatives while also approving major coal and gas projects.”
Just before Christmas the Albanese government approved three coal mine extensions that will generate more than 850 million tonnes of lifetime emissions, undermining Australia’s emissions targets and claims to be a good global citizen.
ACF, along with a coalition of peak bodies, including the Business Council of Australia and ACTU, called for targeted government investment in the decarbonisation of Australia’s metals sector in the Sunshot reports of 2021 and 2023.