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Increased RD&D funding for renewables critical to Australia reaching net-zero by 2050

Australia's annual public research, development and demonstration (RD&D) funding for renewable energy has fallen to historic lows, putting at risk the innovation in smart, clean energy technology and solutions that will be critical to delivering a net-zero by 2050 target.

Based on recent analysis by the International Energy Agency, Australia's total public RD&D spending on renewables fell to just $71.8 million in 2019, which is the lowest level since 2006 and represents a significant decrease from the $577.6 million spent in 2013, a peak for the decade.

"Average RD&D spending on energy has fallen by 58 per cent over the past five years (2014-2019) compared to the previous decade, at a time when Australia should be increasing its RD&D investment to meet the coming challenges of emissions reduction and the energy transition," said Clean Energy Council Chief Executive, Kane Thornton.

"Australia ranked 23rd out of 26 countries in public RD&D energy investment per thousand units of GDP. This is unacceptable for a country that is relying so heavily on technology to meet its international climate commitments. This public funding is also key to unlocking massive amounts of private sector innovation and investment that flows to countries with the strongest levels of government support."

While the Australian Government's energy policy remains focused on 'technology not taxes', it is unfortunate that this is not currently matched by government funding into the critical RD&D stages of clean energy technologies. More funding would also provide an opportunity to develop and define the skills and future workforce here in Australia rather than giving away those jobs and career pathways to our international partners.

"A good starting point would be to double annual funding for clean energy RD&D to $200 million," said Thornton.

"This would be more than twice the current level of funding, which at less than $100 million per annum is at its lowest level in 20 years."

According to the Clean Energy Council, there should also be a review of the Federal R&D Tax Credit Scheme to ensure that renewable energy projects are eligible and that there are more substantial incentives for innovation in clean energy.

"Australia has the key technologies – wind, solar, hydro and energy storage – to rapidly decarbonise our electricity system over the next decade and achieve net-zero before 2050. There remains an opportunity to leverage the great work of the Australian Renewable Energy Agency, the Clean Energy Finance Corporation and institutions like CSIRO to accelerate innovation in technology supply chains, find smart solutions to integrating new technologies, and encourage research into the emerging challenges of a fully renewable energy system.

"Driving this innovation will ensure a greater diversity of solutions, reduce costs and maximise the opportunity for Australia to benefit from local manufacturing and supply chain opportunities as well as better support the integration of these technologies into the energy system," said Thornton.

"Australia can lead the way on key technically complex and innovative solutions and leverage this extraordinary export and global leadership opportunity as a clever country."

ENDS

For more information or to arrange an interview, contact:

Jane Aubrey
Clean Energy Council Media Manager
jaubre[email protected]
+61 409 470 683