Australia’s renewable future confirmed ahead of parliament returning

Labor went into the election championing a target of 80% of Australia’s electricity being generated by renewable energy by 2030 and achieving net zero by 2050, alongside a policy suite that promoted the continued phasing out of fossil fuels.

Prime Minister Anthony Albanese, in his victory speech, said: “Every Australian who knows that climate change is a challenge we must act together to meet, for the future of our environment and knows the fact that renewable energy is an opportunity we must work together to seize for the future of our economy.”

The Albanese government’s flagship policy, a ‘Future Made in Australia’, was allocated A$22.7 billion (approx. USD$14.6 billion) in the budget to maximise opportunities as the country moves towards net zero and establishes Australia’s position as a leading renewables country - which would have been drastically scaled back if the Coalition had won.

The funding is focused on five industries: renewable hydrogen; critical minerals processing; green metals; low carbon liquid fuels: and clean energy manufacturing, including battery and solar panel supply chains.

The Albanese government had already delivered a record amount of investment in renewable energy, and this is set to continue.

Labor took several green energy focused policies to the electorate during the campaign, including home battery subsidies that will make solar uptake an even more enticing proposition for Australians. One in three homes now have solar panels, making Australia the highest per-capita on solar uptake globally.

A$2.3 billion has been earmarked for the scheme, with the hopes of adding over a million home batteries around Australia over the next five years by offering a 30% discount on installation costs to households and businesses.

Although more investment is required in Australia’s energy grid and transmission network to ensure the 2030 target is met through large-scale projects, the future for renewable energy is looking stronger than ever.

Renewables produced 43% of power throughout Australia’s energy grid in the first three months of 2025, according to AEMO.

This coincided with the lowest levels of climate pollution in Australia’s electricity system for the first quarter of a year and record lows for black and brown coal-fired generation during the same period.

This number is only expected to grow throughout the Albanese government’s second term as new renewable projects come online and further investments are made.

The future of offshore wind projects also remains promising and would have hung in the balance had the Coalition been elected, with a promise to scrap several offshore wind zones if it formed government.

Incentives for green industries

The Future Made in Australia Innovation Fund has allocated A$1.7 billion for priority sector funding including A$750 million for green metals; A$500 million for clean energy technology manufacturing capabilities, including electrolysers, batteries and wind towers; and A$250 million for low carbon liquid fuels.

Labor’s victory also confirmed that A$14 billion in green hydrogen incentives will continue to be available, after former opposition leader Peter Dutton promised to scrap the hydrogen production tax incentive.

The Albanese government announced, at the end of 2024, A$475m in funding to develop the Eneabba rare earths refinery project in Western Australia.

Other pledges include A$2 billion in production credits for green aluminium; a A$2 billion investment in the Clean Energy Finance Corporation (CEFC); and establishing a A$1 billion green iron investment fund, with the aim of unlocking an expected A$6
billion of additional private investment in renewable energy and low emissions technologies.
The potential export value of green iron is A$295 billion, or three times the current value of Australia’s iron ore exports, while green aluminium exports could be worth an additional A$60 billion, according to The Superpower Institute.