Australia’s response to US Inflation Reduction Act looks promising


This is a welcome development, following recent comments from the Prime Minister and his planned address to business, community and higher education leaders in the Hunter region this evening.

The Clean Energy Council has advocated for an Australian response to the heightened competition for capital investment, labour and resources driven by the legislation, as well as the responses from other global players, including the European Union and Japan.

Clean Energy Council Chief Executive, Kane Thornton, said that while further details about a response to the IRA have yet to be made public, the Government has demonstrated that it is serious about ensuring that Australia’s clean energy transformation isn’t left behind in the global clean energy investment race.

“Australia has tremendous potential to leverage its superb renewable energy resources and rich mineral endowments to drive a new era of clean, economic expansion,” Thornton said.

“The Clean Energy Council has led calls for Australia to calibrate the policy settings needed to ensure a timely decarbonisation of our energy system, and to make the most of abundant opportunities in future green commodities and manufacturing industries critical to our future success as a clean energy superpower.

“Global clean energy capital is on the hunt for the most competitive markets in which to invest, and Australia will need to step up with a bold and far-reaching policy and funding package which can act as a magnet for new investment in a fiercely competitive global environment.”

The IRA has unleashed a wave of clean energy investment announcements since it was passed in August 2022, exceeding US$420 billion worth of capital investments, 282 GW of clean energy projects, and 42,000 American manufacturing jobs.

“Securing and maintaining a solid flow of investment in Australia also works hand in glove with the work of Commonwealth, state and territory governments to coordinate and improve policies aimed at minimising costs and delays, and harmonising elements of our domestic energy transformation,” Thornton said.

“We look forward to seeing the measures announced in this year’s Federal Budget, as well as continuing to work closely with the Government on shaping and implementing key policy frameworks between now and 2030.”