Australia has the potential to unlock a 5 billion boost to its economy over the next decade by creating green tech supply chains for solar, wind, batteries, heat pumps, and commercial electric cars. A recent analysis highlighted the significant economic benefits that could be realized if legislative and regulatory frameworks are put in place to support local manufacturing and recycling in the cleantech sector.
The Make It Here report by Beyond Zero Emissions (BZE) emphasized the importance of moving away from the traditional dig and ship model towards processing, manufacturing, and recycling onshore. By adding value to Australia’s mineral resources, the country can tap into new opportunities for growth and job creation.
Heidi Lee, CEO of BZE, stressed the need for organized financial backing and the establishment of cleantech manufacturing centers to support the growth of the industry. She highlighted the importance of building capability across the entire cleantech supply chain to capture the full benefits of local production.
One example of a niche industry with great potential is battery manufacturing. Energy Renaissance in the Hunter Valley and Li-S Energy in Geelong are already leading the way in establishing lithium-ion gigafactories in Australia. The cost savings from avoiding overseas shipping can offset production costs and make local manufacturing more competitive.
Recycling also presents a significant opportunity for the cleantech sector, particularly for heat pumps, solar panels, and wind turbine parts. By recycling outdated technology and reducing waste, Australia can support local manufacturing and create a more sustainable supply chain.
To support the growth of the cleantech industry, BZE recommends implementing production credits and local content standards. These measures can provide investors with confidence and bridge the gap between domestic and foreign manufacturing. The Solar Sunshot initiative, a billion federal government program, is seen as a crucial first step towards re-establishing Australia as a leader in cleantech manufacturing.
Countries around the world are already investing in domestic content manufacturing to support their cleantech industries. From the US’s Inflation Reduction Act to Canada’s tax credits and incentives in Asia and India, there is a global trend towards supporting local manufacturing in the green tech sector. Australia has the opportunity to follow suit and capitalize on the growing demand for clean energy solutions.
Overall, by focusing on local manufacturing and recycling, Australia can unlock significant economic benefits and create new job opportunities in the cleantech industry. Implementing local content standards and supporting domestic supply chains are crucial steps towards building a sustainable and competitive cleantech sector in the country.
