Anthony Albanese is putting taxpayers’ money where his mouth is to realise Labor’s net-zero ambitions at a time of hotly contested transition timelines, mounting cost-of-living pressures and unprecedented global competition for clean-energy investment.
After years of rhetoric and big promises, the Prime Minister faces significant challenges in convincing regional Australians and mining states they won’t be worse off under Labor’s transition.
He has embarked on a six-week blitz to promote his “Future Made in Australia” push, a central theme of Jim Chalmers’ May 14 budget that includes new clean-energy incentives to turbocharge Labor’s “renewables revolution”.
At a time when households and businesses are struggling to pay bills, Albanese’s long-term clean-energy and modern manufacturing pitches are hard sells for some.
Residents of central Queensland, the NSW Hunter Valley, Victoria’s Latrobe Valley, Perth and regional communities, whose economies rely on mining, coal and gas, are being asked to put their faith in Labor’s net-zero transition without guarantees of like-for-like jobs, pay and prosperity.
Urban-dwelling climate change advocates are leaning heavily on regional Australia, including coastal communities designated for offshore wind projects, to carry the burden of a transition that has decades to run and risks a hefty price if poorly executed.
As Chalmers navigates low growth and productivity, any missteps by governments in moving too fast or in the wrong direction have the potential to disrupt an economy that has benefited from well-paid mining and energy jobs.
Despite the risks, Albanese is preparing to go all-in over the next 12 months to deliver on Labor’s climate change and renewable energy promises. While the global energy mix is undergoing a transformation, with some countries moving faster than others, Australia cannot compete on a grand scale with China, the US and other nations that have the infrastructure, investment pools and supply chains to maintain dominance.
Asked on Tuesday about competing with China on solar panels, Albanese said “we will be competing and we can compete”.
“If you look at what’s happening around the world, whether it’s (the) Inflation Reduction Act in the United States, whether it be China (which) has subsidies through state-owned enterprises, we need to be more resilient. We make no apologies for wanting a future made in Australia, for wanting manufacturing brought back here.”
The off-budget $15bn National Reconstruction Fund, which has been slow to get moving, $20bn Rewiring the Nation program, $7bn Northern Australia Infrastructure Facility and $4bn Critical Minerals Facility underwrite the PM’s vision. His multibillion-dollar investments in critical minerals, rare earths and renewables, along with major transmission and offshore wind projects, enshrine a winners-and-losers reality.
Ahead of the budget, Peter Dutton will unveil an energy and climate change policy offering voters an alternative to the renewables-only approach embraced by Albanese and Chris Bowen. The Coalition policy, amplifying zero-emissions nuclear energy to underpin reliable power and lower prices, adopts an agnostic position that includes gas and renewables, and ensures coal-fired power stays in the mix as long as required.
With Labor expected to lose its majority at the next election and rely on Greens preferences and crossbench support, Albanese is setting up a high-stakes fight with Dutton he believes he will win.
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