The Morrison government will invest $1.9 billion towards emerging energy technologies in order to reduce emissions and create jobs.
Australia’s renewable energy agency will receive a $1.6 billion dollar boost to support the next generation of technologies including carbon capture and storage, and the development of hydrogen.
Australian Prime Minister Scott Morrison said the focus will be to unlock future technologies which support traditional industries like manufacturing and agriculture while positioning Australia’s economy for the future.
The government also insists it will remain on track to meet its 2030 Paris emissions reduction target.
It comes after the Prime Minister laid out an ambitious plan for a gas-led recovery out of the COVID-19 recession, issuing a strong ultimatum to the energy sector.
Mr Morrison demanded electricity generators provide a plan before April 2021 to fill a looming shortfall in dispatchable power due to the closure of the Liddell coal powerplant in the Hunter Valley.
If private companies fail to deliver on this demand, he promised the government would build a new gas power plant to replace the Liddell power station.
“If the energy companies choose to step up and make these investments to create that capacity, great, we will step back. If not, my government will step up and we will fill the gap,” Mr Morrison said.