Government support for the next generation of energy technologies

The Australian Government is supporting the next generation of energy technologies with an extra $1.62 billion for the Australian Renewable Energy Agency (ARENA) to invest, as well as expanding the focus of ARENA and the Clean Energy Finance Corporation (CEFC) to back new technologies that will cut emissions in agriculture, manufacturing, industry, and transport.

The Government will provide ARENA with guaranteed baseline funding of $1.43 billion over 10 years. ARENA’s baseline funding will be supplemented in two ways:

1. Together with the Clean Energy Regulator, ARENA will be approved to deploy a portion of the $2 billion Climate Solutions Fund; and

2. ARENA will also become a clean technology grants hub for future initiatives, with a new $193.4 million provided to deploy targeted programs.

The Boards of ARENA and CEFC will continue to be accountable for individual investment decisions. The Government will introduce new legislation so both agencies can support new and emerging low emissions technologies (including zero and negative emissions technologies). That ensures they will be able to support critical technologies such as soil‑carbon sequestration, carbon capture and storage, production of green-steel, and industrial processes to reduce energy consumption.