This week the Federal Government announced its 2025–2026 Federal Budget, which aims to encourage investment in Australia’s clean energy industry.
The government is hoping to unlock $8 billion of additional investment in renewable energy and low emissions technologies through a $2 billion expansion of the Clean Energy Finance Corporation.
This is in addition to $36.9 million to enhance the use of existing grid infrastructure and a $10 million accelerated connections fund to reduce grid bottlenecks.
Investment will also be streamlined by a new Front Door initiative. This is intended to make it simpler to invest in Australia and attract more global and domestic capital. From September 2025, the Front Door will begin to act as a single-entry point for investors, providing priority projects with coordinated facilitation services, guided by an investor council.
The budget also builds on the government’s existing $22.7 billion Future Made in Australia agenda.
The government has legislated $13.7 billion in hydrogen and critical minerals production tax incentives and has allocated $1.5 billion in support for priority areas through the Future Made in Australia Innovation Fund.
This includes $750 million for green metals, $500 million for clean energy technology manufacturing capabilities, and $250 million for low carbon liquid fuels.
This is bolstered by the $2 billion Green Aluminium Production Credit, which will support Australian aluminium smelters to transition to renewable energy. Another $1 billion has also been committed to accelerating the development of the nation’s green iron industry.
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