Australia Set to Introduce Sustainable Certificates for Exports
The federal government is informing exporting companies that they will experience improved business operations with the implementation of digital certificates.
A crucial aspect of the $22.7 billion (US$15.3 billion) Future Made in Australia program is about to be unveiled, promising global exporters significant benefits.
Assistant Minister for Climate Change Jenny McAllister states that the Guarantee of Origin scheme will ensure emissions accountability, facilitating the growth of Australia’s green industries.
This scheme will issue digital certificates enabling producers, exporters, and users to demonstrate the origin of a product, along with the associated emissions from its production and transportation.
Initially focusing on hydrogen, the initiative will later cover low-carbon liquid fuels like sustainable aviation fuel, environmentally friendly metals such as steel and aluminum, and biomethane and biogas.
Ms. McAllister describes the program as the “most crucial green industry program you may not have heard of.”
“As the world transitions to a lower-carbon economy, businesses’ ability to account for their products’ carbon emissions will become increasingly vital,” she mentioned in a statement.
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“The Guarantee of Origin opens up new market avenues for Australian energy exporters striving for net-zero goals.
“This scheme will give Australian companies a competitive edge by furnishing government-endorsed certification of the carbon footprint of essential environmental products.”
Businesses can also leverage these certificates to validate eligibility for tax credits under the $6.7 billion Hydrogen Production Tax Credit, which was part of the 2024-25 federal budget.
In the 2024-25 Budget, the government nearly doubled the funding for developing the Guarantee of Origin scheme, totaling committed funding to over $70.4 million.
The government is reviewing submissions made during the consultation process, with a final response expected shortly.
The scheme is scheduled to commence in the latter half of 2025.
Given that most of Australia’s trading partners have net-zero commitments, official verification could aid businesses in avoiding costly tariffs or trade hindrances on hydrogen or ammonia production that relies on coal or gas-fired power rather than renewable sources.
This announcement is set to be made at the Australian Clean Energy Summit in Sydney, coinciding with the first Australia-India Renewable Energy Dialogue.
India has aimed for 50% renewable energy by 2030, aligning with both countries’ objective of reaching net-zero emissions.
However, Australia India Institute CEO Lisa Singh noted that trade opportunities have faced challenges.
“Indian firms perceive this as a barrier to investing in Australia, while Australian companies find it challenging to navigate the Indian business environment. This dialogue seeks to change that narrative,” she remarked.
