Powering Australia

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The Australian Government’s Powering Australia plan is focused on creating jobs, cutting power bills and reducing emissions by boosting renewable energy.

Australian leadership

The government has progressed the following Powering Australia commitments:

• Formal lodgement of the 43% emissions reduction target by 2030 as an enhanced Nationally Determined Contribution under the Paris Agreement.
• This emissions reduction target and the net zero 2050 target are enshrined in law in the Climate Change Act 2022.
• Funding of $45.8 million over 6 years as part of the 2022-23 Budget to support an international climate step-up. This includes a bid to co-host a future Conference of the Parties in Australia with Pacific partner countries and constructive and ambitious participation in international forums.
• Funding of $42.6 million over 4 years in the 2022-23 Budget to enable the Climate Change Authority to provide independent climate change advice to government.
• Funding of $7.1 million over 2 years in the 2022-23 Budget to implement an interim policy and reporting framework as part of the government’s commitment that the Australian Public Service, excluding security agencies, commit to net zero emissions by 2030.

Backing industry, agriculture and carbon farming

The government has progressed the following Powering Australia commitments:

• An initial consultation on design options for Safeguard Mechanism reforms and release of an exposure draft of legislation required to enable crediting and trading under the reforms.
• Appointment of an independent expert panel to review the integrity of Australian Carbon Credit Units (ACCUs). The Panel is consulting widely and has published a consultation paper for public submissions. Submissions can be viewed on our consultation hub. The panel will provide the government with a report with recommendations by 31 December 2022. Read more about the independent review of ACCUs.
• Established the $1.9 billion Powering the Regions Fund (PRF) to support the decarbonisation of existing industries and creation of new clean energy industries and jobs.  Consultation on the design of the PRF has closed. For information on this consultation, you can visit our consultation hub. For further information on the PRF, please contact PRF@DCCEEW.gov.au.
• Funding of $8.1 million over 3 years in the 2022-23 Budget to progress research and support the commercialisation of seaweed as an emissions-reducing livestock feed supplement.
• Funding of $95.6 million over 9 years in the 2022-23 Budget to support 10,000 people to complete a New Energy Apprenticeship and a $9.6 million New Energy Skills program.
• Commitment of $15 billion in the 2022-23 Budget to establish the National Reconstruction Fund, including up to $3 billion for the Powering Australia plan.

Transport

The government has progressed the following Powering Australia commitments:

• Passing the $345 million Electric Car Discount Bill, exempting eligible electric cars from fringe benefits tax (FBT) and the 5% import tariff.
• Funding of $275.4 million over 6 years in the 2022-23 Budget for the Driving the Nation Fund which takes total investment to over $500 million to help reduce transport emissions, including electric vehicle charging infrastructure and hydrogen highways.
• Funding of $14 million over 4 years in the 2022-23 Budget to the Australian Automobile Association to conduct on-road emissions and fuel consumption testing of light vehicles sold in Australia.
• Introduction of the Commonwealth fleet target to ensure its fleet purchases and leases will be 75% electric by 2025.
• Developing Australia’s first National Electric Vehicle Strategy.

Electricity

The government has progressed the following Powering Australia commitments:

• Secured agreement to establish a new National Energy Transformation Partnership – a fundamental reset of relations across governments and the first fully integrated national energy and emissions agreement.
• Established Rewiring the Nation in the 2022-23 Budget with $20 billion in low-cost finance to expand and modernise Australia’s electricity grids at lowest cost.
• Announcement of the first Rewiring the Nation electricity transmission investments to provide concessional financing for the Marinus Link between Tasmania and Victoria, offshore wind projects and Renewable Energy Zones in Victoria, and the Victoria-NSW Interconnector (VNI West) KerangLink.
• Funding of $224.3 million over 4 years in the 2022-23 Budget to deploy 400 Community Batteries across Australia to reduce bills, cut emissions and ease pressure on the grid.
• Funding of $102.2 million over 4 years in the 2022-23 Budget for the Community Solar Banks initiative.