SYDNEY, Jan 20, (V7N) – Australia has unveiled a $1.2 billion green metals initiative to encourage aluminium smelters to transition from coal-fired electricity to renewable energy. Prime Minister Anthony Albanese announced the plan on Monday, offering production credits to companies producing "clean" aluminium over the next decade. This move aims to position Australia as a global leader in sustainable aluminium production amid rising demand for environmentally friendly metals.

Aluminium smelters consume nearly 10% of Australia's electricity, traditionally sourced from coal. By incentivizing renewable energy use, the government seeks to reduce emissions in an industry responsible for 2% of global greenhouse gases. Mining giant Rio Tinto welcomed the initiative, with Australian executive Kellie Parker calling it a critical step to future-proof the industry as traditional energy sources become less viable.

The initiative aligns with Australia's broader climate goals to cut emissions by 43% by 2030 and achieve net-zero by 2050. Renewable energy already accounts for over 30% of the country’s electricity generation, with coal plants slated for closure over the coming decade. The shift toward green aluminium production could also enhance Australia’s competitiveness in a decarbonizing global economy.

Australia’s mining and fossil fuel industries have driven decades of economic growth, but the country now faces increasing climate challenges such as bushfires and droughts. Albanese emphasized the potential for green aluminium to address these dual challenges, stating, "The world is looking to import clean, reliable metals like Australian-made aluminium," underscoring the initiative’s economic and environmental significance.