The Australian Conservation Foundation (ACF) has expressed support for the recently passed legislation providing tax incentives for renewable hydrogen and critical minerals processing.
ACF CEO Kelly O’Shanassy welcomed the move, describing it as a significant step towards Australia’s participation in the emerging clean global economy.
The legislation, which passed through the Senate, offers targeted tax breaks for renewable hydrogen production and eligible critical minerals processing and refining activities.
O’Shanassy highlighted that these industries are crucial for clean technologies such as solar panels and electric vehicles.
Key aspects of the legislation include:
- A $2 incentive per kilogram of renewable hydrogen produced between 2027-2028 and 2039-2040.
- A 10 per cent tax credit on relevant processing and refining costs for Australia’s 31 critical minerals.
- Amendments to prevent public funds from being directed to uranium mining.
O’Shanassy praised the legislation’s focus on clean forms of hydrogen produced with renewables, excluding fossil fuel-intensive processes.
She also commended the adoption of amendments proposed by the Greens to prevent funding for uranium mining, citing radioactive risks and opposition from First Nations communities.
The ACF views these time-limited tax incentives as a sensible government investment to jumpstart clean energy industries and provide policy certainty for investors.
O’Shanassy emphasised that the growth of clean energy export industries allows Australia to contribute to climate solutions rather than exacerbating climate change through coal and gas exports.
However, the ACF also called for further action from the government.
O’Shanassy urged for an urgent pivot away from fossil fuel exports and criticised the continued public handouts to coal and gas industries.
She specifically mentioned the $1.9 billion subsidy for the Middle Arm gas precinct as “outrageous”.
Research co-commissioned by ACF suggests that targeted tax incentives are an important intervention to support the long-term growth and competitiveness of clean energy exports.
As Australia moves towards a cleaner energy future, the ACF encourages the government to focus on supporting communities and industries that align with this vision, rather than those accelerating climate-related disasters.
