Green Aluminium Credit initiative to lower emissions and boost Australian exports
A $2 billion scheme will encourage aluminium producers to switch to renewable energy, aiming to create secure jobs and reduce emissions across Australia.
The Federal Government has introduced a $2 billion Green Aluminium Production Credit to support local aluminium producers transitioning to renewable electricity. Announced during Prime Minister Anthony Albanese's visit to Tomago Aluminium yesterday, the program aims to position Australia as a leader in sustainable aluminium production while ensuring economic and environmental benefits.
“Labor’s plan for a Future Made in Australia is very clear: we want Australia to make more things here,” said Mr Albanese. “Investing in the Australian-made aluminium industry is a massive opportunity – to create well-paid jobs in our regions and suburbs, and set Australia up for the future.”
The Green Aluminium Production Credit will support smelters for each tonne of aluminium they produce using renewable energy over a ten-year period. Starting in the 2028–29 financial year, the initiative is designed to give producers the confidence to invest in renewable energy and modernise their facilities.
The initiative is expected to deliver benefits beyond emissions reduction, such as economic growth and expanded regional employment. Communities in key regions like the Hunter are likely to see an increase in secure, well-paying jobs as industries adopt renewable energy sources.
“Jobs up, emissions down and a secure future for our world-class aluminium industry – that’s what today’s announcement provides,” said Minister for Industry and Science Ed Husic. “With an entire aluminium supply chain uniquely located right here in Australia, we're well positioned to capture the rewards of the global green energy transition.”
Australia is already the world’s sixth-largest aluminium producer, with facilities in locations such as Gladstone, Portland, Bell Bay, and Tomago. The sector’s full supply chain—from bauxite mining to finished products—is based domestically, reflecting generations of local expertise. By decarbonising production, Australia could position itself as one of the lowest-cost producers of green metals globally.
The government established the Industrial Decarbonisation and Green Metals Advisory Panel in 2024 to provide advice on how to support the transition. The panel’s recommendations will inform strategies to decarbonise Australia’s metals industry and align with the nation’s net zero goals.
The Green Aluminium Production Credit forms part of Labor’s Future Made in Australia plan, aiming to revitalise local manufacturing and ensure a sustainable future for Australian industry.
