The Australian Government is seeking public feedback on the design of a new $2 billion initiative to help the nation’s aluminium smelters shift to renewable energy and produce green aluminium.
Submissions for the proposed Green Aluminium Production Credit are open until 30 October, with the consultation aiming to shape eligibility, credit rates, and payment structures to best support the industry’s decarbonisation.
Aluminium is a critical material for modern infrastructure and clean energy technologies but remains one of the most energy and carbon-intensive products to manufacture. Smelters consume more than 10 per cent of a state’s electricity and contribute around 3–4 per cent of Australia’s total greenhouse gas emissions.
The Green Aluminium Production Credit is designed to offset some of the costs associated with switching to renewable energy sources and low-emissions production processes.
It forms part of the government’s Future Made in Australia National Interest Framework, which identifies green aluminium as a priority sector with a sustained comparative advantage in the global net zero economy.
Green aluminium is used across industries including construction, defence, transport, and electronics, as well as in renewable energy infrastructure such as solar panels, wind turbines, and transmission lines.
Supporting smelters to decarbonise will also advance the government’s target of cutting national emissions to between 62 and 70 per cent below 2005 levels by 2035.
Under the proposed credit, smelters must demonstrate significantly reduced carbon emissions before 2036 to be eligible for an emissions-linked contract. Payments would be made per tonne of green aluminium produced, for up to 10 years or until 2044 – whichever comes first.
The consultation process will explore not only financial mechanisms but also practical challenges faced by smelters in transitioning to renewable power and cleaner production methods.
The Department of Industry, Science and Resources said it welcomes feedback from all interested stakeholders to inform advice to government on the program’s final design and administration.
Through this process, the Green Aluminium Production Credit is expected to lay the foundation for Australia to become one of the world’s greenest aluminium producers, supporting both industrial competitiveness and national emissions reduction goals.
