The Green Aluminium Production Credit will drive deep decarbonisation and allow our aluminium industry to benefit from the emerging global green metals market opportunity.
The $2 billion Green Aluminium Production Credit, available from 2028–29, will support Australia’s aluminium smelters to transition to renewable electricity. The credit will position Australian aluminium as some of the greenest in the world.
- Smelters that can show new significant decarbonisation before 2036 can negotiate an emissions-linked credit contract payable per tonne of green aluminium produced for up to 10 years.
- We will base final credit rates on individual facility circumstances and be dependent on reducing Scope 2 emissions. Scope 2 emissions are indirect greenhouse gas emissions associated with the purchase of electricity, steam, heat or cooling. They account for around 85% of emissions from aluminium smelting.
- A review in 2030 will evaluate the credit design and market impact.
The Australian Government has also committed $1.5 million over 3 years. This will help shape and influence standards for green aluminium with our international partners and give technical expertise about definitions for other green metals. This work will inform final design and eligibility for the credit.
Green metals are pivotal for global decarbonisation. They present Australia with unique opportunities to harness our rich mineral and renewable resources and established mining and metals industries for future competitiveness.
Australia’s globally competitive in aluminium industry is critical for our economy and jobs. It supports over 13,000 direct, indirect and induced jobs nationally, with:
- 2,464 jobs in Queensland (Boyne smelter)
- 2,796 jobs in NSW (Tomago smelter)
- 1,383 jobs in Victoria (Portland smelter)
- 951 jobs in Tasmania (Bell Bay smelter)
- another 5,886 jobs nationally (Australian Aluminium Council, 2024).
We are also unique in having the entire aluminium supply chain, from bauxite mining to finished products onshore. Collectively, this supports over 75,000 jobs. Aluminium is on Australia’s Strategic Materials List and has a wide range of uses across the economy, including in the automotive and construction industries.
The Guarantee of Origin Scheme will measure, track and verify the emissions associated with green metals products. Government support will rely on the scheme to verify that green metals producers are meeting the required decarbonisation eligibility criteria of green metals policies.
Updated 21 January 2025 to add more information.