The Federal Government has opened consultation on a proposed $2 billion green aluminium production credit (GAPC) scheme to accelerate the decarbonisation of production.
The credit will provide local smelters with the “confidence to invest” in renewable energy sources to back Australian-made facilities to ensure the country secures a lasting competitive advantage in the global clean energy economy.
The GAPC is part of the government’s Future Made in Australia iniative, which is designed to support industries essential to the nation’s net-zero ambitions.
Under the proposal, aluminium smelters will receive production credits for each tonne of ‘green aluminium’ produced using renewable energy, with $2 billion allocated to the scheme until 2036.
Under the scheme, facilities will be eligible for support for every tonne of “clean, reliable, Australian-made aluminium” they make over a period of up to 10 years or to 2044, whichever is sooner.
“Australia’s aluminium smelters have long been the backbone of our manufacturing sector,” Federal Minister for Industry and Innovation and Minister for Science Tim Ayres said in a statement.
“Demand for aluminium, because of its wide range of uses including for the infrastructure necessary for the energy transition – both at home and with our trading partners – is set to grow strongly in the decades ahead,” he added.
Aluminium production contributes three to four per cent of Australia’s total greenhouse gas emissions – with the federal government looking to cut this to support 2035 emissions reduction targets.
Consultation on the design of the production credit will close on October 30, 2025. For more information and to contribute to the consultation, visit consult.industry.gov.au.
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