The Albanese Labor Government is supporting Australia’s industrial sector to reduce its emissions and contribute to reaching Australia’s ambitious and achievable climate goals.

The Government is today announcing a new $5 billion Net Zero Fund to support Australian heavy industry to decarbonise, as well as the scale-up of low emissions technologies needed for our Net Zero Plan.

In particular, the Net Zero Fund will support large industrial facilities to make major investments in new equipment, technologies and processes to decarbonise – so that firms can make the most of the global push towards net zero carbon emissions.

Delivered by the National Reconstruction Fund (NRF), investments will help ensure facilities are fit for future production while preserving good jobs in regional and outer-suburban Australia.  

Capital for the Net Zero Fund will be drawn from the existing $15 billion NRF.

The Government will work closely with Australia’s industrial facilities and clean technology manufacturers to ensure the Net Zero Fund can unlock investment at scale and accelerate achieving Australia’s net zero agenda.

Consultation with industry on the design of the Net Zero Fund and the detailed policy settings needed to support new decarbonisation investments will commence in a matter of days. This will also inform ways to leverage the complementary investment objectives and capabilities of the NRF and the Clean Energy Finance Corporation.

The Fund will support Australian industry to decarbonise and contribute to economy-wide net zero emissions by 2050. The Industry Sector Plan released today explains how Australia’s industry and waste sectors can reduce emissions while becoming more competitive and continuing to deliver good jobs.

The Plan builds on the Albanese Government’s existing energy transition and industry policies, including:

• The $22.7 billion Future Made in Australia plan and its funding for the development of green iron, green aluminium and battery storage technologies;
• The Capacity Investment Scheme, which is on track to meet its goal of delivering more than 40 GW of additional capacity and $73 billion of investment by 2030;
• And the Net Zero Economy Authority, which will support regions, communities and workers as they manage the impacts, and share in the benefits, of the net zero economy.

Quotes attributable to Minister for Industry and Innovation and Minister for Science, Tim Ayres:

“As Australia reduces its emissions, the Albanese Labor Government will ensure that Australian industry remains competitive and resilient, and that the energy transition is coordinated in a way that creates opportunity for Australian workers in carbon-intensive occupations.

“The Climate Risk Assessment Report, the first of its kind in Australia, clearly shows what’s at stake if we don’t provide the right kind of leadership that Australia needs at this critical juncture.

“The Net Zero Fund will be a vital component of the Albanese Labor Government’s industrial strategy, which already represents the biggest pro-manufacturing investment in Australian history.

“The Fund will deliver targeted investments that bolster the transition to less carbon-intensive manufacturing and production processes, including at some of Australia’s most economically and strategically important industrial facilities.  

“The Albanese Government is making up for lost time, reversing the Coalition’s decade of underinvestment in the energy grid and leading Australian industry to a more competitive, resilient future in a more productive economy.”