As U.S. President Donald Trump works to roll back many Biden-era clean energy policies, Australia’s renewable industry is hoping to attract investments that were previously allocated for the American market. The opportunity comes as the nation looks to secure billions in funding to help meet its own climate goals.
Why does Australia want to attract clean energy investments previously meant for the U.S.?
The Australian Energy Market Operator estimates that $122 billion will be required to achieve the country’s net zero emissions target by 2050. With the shifting U.S. political landscape, officials in Australia hope that some of the tens of billions in potential investment now in flux will be directed toward their nation’s renewable energy sector.
What is the Australian renewable energy sector saying about this?
The CEO of the Melbourne-based Clean Energy Investor Group, Richie Merzian, described the opportunity as significant, noting that Biden’s Inflation Reduction Act (IRA) had previously drawn global investment into the U.S. renewables market. However, with uncertainty surrounding the future of IRA funding under Trump, the group sees potential for Australia to attract some redirected investment.
Duncan Paterson, director of investor practice at the Investor Group on Climate Change, echoed this sentiment, suggesting that a U.S. pullback from renewable energy projects could make Australia a more appealing destination for energy development.
Despite this, the Australian Industry Group cautions that tax incentives supporting clean power in the IRA remain intact for now. As a result, major U.S. renewable projects may not experience immediate funding changes or a need for relocation.
What happens next?
Additionally, several investor groups warn that gaps in Australia’s domestic policy could limit its ability to compete for global renewable energy capital. Some experts have called for an overhaul of the National Electricity Market to create a more favorable environment for renewable energy investment.