A key component of the $22.7 billion (US$15.3 billion) Future Made in Australia program is set to be announced, with the government promising global exporters they'll reap the benefits.
According to Assistant Minister for Climate Change Jenny McAllister, the Guarantee of Origin scheme will ensure emissions accountability, which will help grow Australia’s green industries.
The scheme will issue digital certificates that allow producers, exporters and users to prove where a product was made, and the emissions associated with its production and transport.
The initiative will start with hydrogen before expanding to include low-carbon liquid fuels like sustainable aviation fuel, “green” metals like steel and aluminium, and biomethane and biogas.
Ms. McAllister labelled the program the “most important green industry program you never heard of.”
“As the world decarbonises, it will be increasingly important for businesses to be able to account for the carbon emissions associated with their products,” she said in a statement.
“Guarantee of Origin is a key to new market opportunities for Australian energy exporters in the race to net-zero.
“The Guarantee of Origin scheme will give Australian companies a competitive advantage by providing government-backed certification of the carbon intensity of key green products.”
Companies would also be able to use certificates to establish eligibility for tax credits under the $6.7 billion Hydrogen Production Tax Credit, which was passed as part of the 2024-25 federal budget.
The government almost doubled the funding for developing the Guarantee of Origin scheme in the 2024-25 Budget, bringing the total committed funding to over $70.4 million.
The government is considering the submissions made as part of its consultation. A final response to that consultation is due to be released shortly.
The aim is for the scheme to begin in the second half of 2025.
With most of Australia’s trading partners having net-zero commitments, the government says official proof could help businesses avoid expensive tariffs or trade bans on hydrogen or ammonia production requiring coal or gas-fired power rather than renewables.
The announcement will be made at the Australian Clean Energy Summit in Sydney, where the first Australia-India renewable energy dialogue will be held.
India has set a target of 50 percent renewables by 2030, and both countries share the goal of achieving net-zero emissions.
Yet Australia India Institute CEO Lisa Singh said trade opportunities had been bogged down.
“Many Indian firms see this as a roadblock to investment into Australia, while Australian companies struggle to navigate the Indian business landscape. This dialogue aims to turn that around,” she said.
