The Centre for Policy Development (CPD) welcomes the government’s $2 billion investment in green aluminium – an essential step toward decarbonising Australia’s economy and positioning the nation as a green industry leader.
Green, low-carbon aluminium is critical not only for cutting emissions but also for securing the future of Australia’s $5.1 billion aluminium industry and supporting the production of green technologies.
CPD’s Green Gold report identified aluminium as a key green export opportunity requiring government support. As an energy-intensive commodity with a vast global market, green aluminium presents a significant opportunity for Australia to capitalise on its competitive advantages – abundant renewable energy, critical minerals, and a highly skilled workforce.
The report found that unpredictable technology costs and a global market that favors emissions-intensive industries pose significant barriers to green industry growth. Overcoming these challenges demands bold government policy and investment.
The government’s introduction of a 10-year production credit to support green aluminium production is a pivotal step in advancing the Future Made in Australia agenda and ensuring long-term economic resilience and prosperity.
Centre for Policy Development Economic Director Toby Phillips commended the government’s strategic vision for Australia’s economic future:
“The energy transition is not just about addressing climate change; it’s about unlocking tremendous economic opportunities.
“Incubating new green metals industries, like green iron and green aluminium, is the single biggest opportunity for the Australian economy.
“With our abundant renewable energy and critical resources, Australia can become a global leader in producing high-demand products like green aluminium.
“Aluminium smelting is one of the most energy intensive industrial processes in the world. It accounts for around 10% of all the electricity used in New South Wales. Decarbonising this industry will stake a claim for Australia’s position in a low-carbon global economy.
“We welcome the government’s commitment to long-term economic planning and investment in industries that will secure Australia’s future prosperity.”
