Green smelting backed
Australia is investing $2 billion to decarbonise its aluminium sector.
The government’s new Green Aluminium Production Credit will help smelters transition to renewable energy by 2036, offering financial support for every tonne of clean aluminium produced over a ten-year period.
As the world’s sixth-largest aluminium producer, Australia relies on the metal for renewable energy technologies like solar panels, wind turbines, and batteries.
The sector supports approximately 13,000 jobs, and the initiative will boost job certainty in key smelting regions, including Tomago (NSW), Boyne (QLD), Portland (VIC), and Bell Bay (TAS).
“This is what Building Australia’s Future looks like,” says Prime Minister Anthony Albanese.
The funding aligns with Labor’s broader goal of strengthening local manufacturing and cutting emissions.
Industry leaders, including Rio Tinto, have praised the initiative.
The Net Zero Economy Authority, tasked with overseeing the shift to net zero emissions by 2050, also backed the funding, highlighting its role in future-proofing regional jobs and meeting growing international demand for sustainable metals.
The opposition leader, Peter Dutton, has criticised the plan as a “$2 billion con job” and argued for nuclear energy as a more reliable alternative.
Aluminium smelters and refineries currently account for 10 per cent of the east coast’s energy use. Industry calls for expanded renewable energy infrastructure, such as transmission lines, underscore the challenges of meeting sustainability goals.