2024 Federal Budget in review: Focus on Australia’s Net Zero and Clean Energy Future

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This Budget aims to accelerate the growth of new clean and green economy industries

This is positive news as it maximises the economic and industrial benefits of Australia’s renewable energy potential and transition to net zero, and aims to strengthen our resources and economic security, attract private investment in key industries and build a more resilient and future proofed job market.

This Budget aims to accelerate the growth of new clean and green economy industries by funding:

• the establishment of the $1.7 billion Future Made in Australia Innovation Fund,
• $7 billion in incentives for processing and refining critical materials,
• $6.7 billion in incentives for production of renewable green hydrogen,
• $1.1 billion to reform higher education and deliver a skilled workforce,
• a $44.4 million Energy Industry Jobs Plan, and
• $134.2 million for skills and employment support in key regions.

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This approach will make a meaningful impact on the need to drive down industry emissions in Australia

This Budget is the first to lay out a National Interest Framework which is structured around the Net Zero transformation stream and an Economic Resilience and Security stream. At the centre of this energy transition are Renewable Energy Industrial Precincts (REIPs), designed to accelerate the growth of clean energy technology manufacturing and clean fuel production in Australia by supporting a cluster of manufacturers powered by 100% renewable energy.

Promoting investment in the development of clean energy manufacturing precincts and REIPs addresses hesitancy from green economy investors in Australia. It signals to investors that the government is serious about attracting domestic and overseas funding in clean energy technologies and industries.

This approach will make a meaningful impact on the need to drive down industry emissions in Australia, with mining, manufacturing and construction directly responsible for around 34 per cent of Australia’s emissions today; or half if the electricity used by these sectors is also counted [1].

^[1] https://www.climatecouncil.org.au/resources/australias-clean-industry-future-making-things-in-a-net-zero-world

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The government has included significant measures to incentivise the development of Renewable Energy Industrial Precincts (REIPs)

This Budget signals that Australia is serious about investing in the technology and infrastructure required to build REIPs that can manufacture green energy and green products in Australia, leveraging our unique geographical location.

The government has included significant measures to incentivise the development of REIPs; such as the incentives for renewable green hydrogen production for heavy industrial manufacturing to produce green steel, green aluminium and green concrete.

Urbis is currently working on several renewable energy industrial precincts (REIP) master plans, predominantly in regional locations to ensure these precincts are powered by 100% renewable energy throughout the entire supply chain, including , warehousing, and the built environment.

Urbis has long been known for its expertise in property, planning, design and economics. With our new net zero, decarbonisation and sustainability team, we understand how these come together to meet some of the greatest challenges we’ll face tomorrow.

While Urbis is working with clients on developing new net zero revenue streams around industrial precincts and clean energy technology manufacturing –– there’s a substantial question of the skilled workforce who will be required work in these precincts.

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According to Infrastructure Partnerships Australia, the energy sector in 2026 Q2 could see a labour demand of up to 3 times that of 2024 Q2

If REIPs are the epicentre of the net zero agenda, Australia will need a regionally based skilled workforce, to ensure we can decarbonise our major polluting industries as quickly as possible. According to Infrastructure Partnerships Australia, the energy sector will see an increase of up to 350% in labour demand by 2026 relative to 2024 Q2.

While this Budget contains measures to incentivise upskilling and broaden jobs, there will also be a need to create educational systems in the right locations for the next generation of the green economy. Who will create these systems? Where will this learning occur? And who will teach the new energy technological knowledge that’s needed? A $1.1b investment over 5 years has been made to expand and reform tertiary education. This is a step in the right direction.