The Australian government has allocated substantial funding to critical minerals and clean energy initiatives.
Over the next 10 years, $1.4 billion will be provided to support the manufacturing of clean energy technologies.
The government’s Future Made in Australia agenda will drive these initiatives.
A new framework, established under the Future Made in Australia Act, will prioritise industries for funding.
Funding will support projects contributing to net-zero emissions and bolstering supply chain security.
Jorge Acevedo Pallares, Environmental scientist, Shed light on the Australia’s strategic approach to achieving net-zero emissions.
Vanessa Gatica: The Australian Government has allocated substantial funding to critical minerals and clean energy initiatives. Over the next ten years, $1.4 billion will be provided to support the manufacturing of clean energy technologies. The government’s Future Made in Australia agenda will drive these initiatives. A new framework established under the Future Made in Australia Act will prioritize industries for funding. Funding will support projects contributing to net zero emissions and bolstering supply chain security. Jorge Azevedo, Polaris environmental scientist, shed light on the Australia’s strategic approach to achieving net zero emissions. Do you think that environmental care has been a winner in the allocation of the 2024 budget?
Jorge Acevedo: The budget seems very generous, and when we see the numbers, we may think that it’s actually something really good and it’s a positive step forward. However, numbers on their own mean nothing if we don’t put them in a context. Numbers don’t mean anything. So it’s always very important to understand what is the context, to have a reference point, to understand if the budget is actually, um, a generous one or is actually below of what is expected. The Australian government has overall, uh, allocated $5.5 billion in the um 2425 budget. However, fossil fuel subsidies in Australia last year were 14.5 billion. That’s three times more than the advertised budget. It’s a positive step towards a more sustainable future for Australia, but actually why you are spending three times more subsidising the fossil fuels? One would think that in the face of the climate crisis, the fossil fuel subsidy would be reducing, but in Australia it is actually increasing. Uh, during 2022, 2023, um, financial year, there were 11.1 billion of subsidies. And then the next year, 2324, there was an increment to 14.5 billion. And it is expected that in the next five years there will be about 65 billion cumulatively, um, 65 billion that will come out of our taxes in subsidies in favour of a warmer world.
Vanessa Gatica: How does the strategic approach outlined by the Australian government align with the global efforts to combat climate change and achieve sustainability?
Jorge Acevedo:This is a very good question. Um, overall, Australia has committed, like many other countries, towards, you know, putting a step forward, um, in the fight of climate change and the climate action that they are committing to is, um, Australia’s 2030 target of reducing emissions is 42% below 2005 levels. And this aligns with the global push for significant emissions reductions. Yet when you start seeing the details, because this is all about commitments, I promise to do something in the future. And this is our commitment. And yet we need to remember that all these commitments are not liable. Um, it’s just voluntary commitments. If we fail to achieve them, we probably are going to say we’re sorry we didn’t make it and there’s no enforcement to them. To. We realize that actually Australia should be aiming for at least 50%. At least this is what is recommended. Or, um, achieving the 1.5 degrees limit on global warming that we are all pursuing. And it is not the only one just making big claims and actually falling short, because the progress made so far is about 20% only. So we have about, what, 5.5 years to 2030 to reach, um, 42%? Unlikely that we’re going to get it at this pace. Something radical needs to happen. And then after that, the state is committed to, uh, like many other countries to reach net zero by 2050.
Vanessa Gatica:: How do critical minerals contribute to achieving net zero emissions?
Jorge Acevedo: Well, this is really interesting because the contribution of critical minerals to achieving net zero emissions is multifaceted, but involving their application in renewable energy technologies, energy storage, electric vehicles, grid infrastructure, efficiency improvements and hydrogen production. All these will require these rare minerals. Um, by supporting these key areas, critical minerals enable the decarbonisation of various sectors, ultimately facilitating the transition to a low carbon economy and all that is good. Um, you know, many, many clean energy technologies like solar panels, wind turbines, electric vehicles and battery storage systems, they all rely on critical minerals for their construction and operation. For instance, lithium is essential for energy batteries. Uh, well, rare earth elements are used in wind turbine magnets and solar panels. So the critical minerals like copper are crucial to building also new transmission lines and improving grid resilience, because in a warmer planet, the transmission of energy is going to be lost more and more because the heat does not help the the transmission of energy. So we don’t we not only need to update our technologies, but also the distribution of that energy.
Vanessa Gatica: I am Vanessa Gatica for The Wire, speaking with George Acevedo, Pallares environmental scientist.