Companies will get an edge in international trade with the fast-tracking of Australia’s proof-of-origin scheme for new fuels, fertilisers and building materials, the government says.
Due to announce the move at an industry conference on Tuesday, Assistant Minister for Climate Change and Energy Jenny McAllister said it would become increasingly important for businesses to be able to account for their products’ emissions intensity.
“The guarantee of origin scheme will give Australian companies a competitive advantage by providing government-backed certification of the carbon intensity of key green products,” she told AAP.
A crucial component of the $22.7 billion Future Made in Australia program, the scheme begins with renewable hydrogen in 2025 before expanding to sustainable aviation fuel, green steel and aluminium, and biomethane and biogas.
As the climate-accounting backbone of new green industries, it is designed to allow producers, exporters and users to prove where a product was made, and the emissions associated with its production and transport.
Digital certificates, backed by proof of renewable energy use, will be used to establish eligibility for tax credits under the $6.7 billion Hydrogen Production Tax Credit announced in the May budget, and trigger the development of other new industries.
As almost all of Australia’s trading partners have net-zero commitments, official proof of emissions could avoid costly tariffs or trade bans on hydrogen or ammonia production that relies on coal or gas-fired electricity rather than renewable energy.
“Guarantee of origin is a key to new market opportunities for Australian energy exporters in the race to net-zero,” Senator McAllister said.
The first Australia-India renewable energy dialogue is also being held alongside day one of the Australian Clean Energy Summit in Sydney, with India aiming for 50 per cent renewable energy by 2030.
Despite being big coal and gas exporters and users, the two countries say they have a shared commitment to reach net-zero emissions.
But renewables collaboration remains “bedevilled” by a lack of understanding of the policies, capabilities and trade and investment opportunities on both sides, Australia India Institute CEO Lisa Singh said.
“Many Indian firms see this as a roadblock to investment into Australia, while Australian companies struggle to navigate the Indian business landscape. This dialogue aims to turn that around,” she said.
Marion Rae
(Australian Associated Press)
