Australia and the US have announced a bilateral agreement to collaborate on legislation to aid the green energy transition in both countries with a new compact.
The Climate, Critical Minerals and Clean Energy Transformation Compact will see the two countries adopt shared energy goals and policies.
At a press conference, Australian Prime Minister Anthony Albanese stated: “The [US] President will support the Congress taking action to treat Australian suppliers and activity as domestic activity in the United States for the purpose of the Defense Production Act.”
This will in effect allow Australian green businesses to benefit from subsidies and protections provided to US companies under the Inflation Reduction Act, which has prompted a swathe of businesses globally to migrate to the US to benefit from its green subsidies.
Albanese noted that without these new support measures, hydrogen-based industries, for example, would have a “massive incentive” to be based in the US.
He said: “The big risk with the Inflation Reduction Act […] is that you’ll see capital leave Australia to go to the United States. This is about addressing that.”
In a joint statement, Albanese and US President Joe Biden that they will establish a joint forum in order to set the compact’s agenda.
Source : Mining
