Kate Hartness’ Post

Australia’s 2024-25 Federal Budget (Budget) showcases the significance that the Resources and Energy sectors continue to play in the economy, and in most instances, pairs our national ambition with investment. Some highlights from the Budget are set out below. • $18.1 million over six years, to fund the rapid pursuit of the green metals industry, including consultation to incentivise support for local production of green iron, steel, alumina and aluminium. • A $1.2 billion investment for critical minerals projects, largely in the form of loans. • Over the next 10 years, a $566 million commitment to improve geoscientific research, to fund the creation of a comprehensive map of the nation’s subsurface and seabed resources, and to map sites for clean hydrogen and carbon capture and storage (CCS). • Robust investments will be deployed to supercharge hydrogen development, including: $2 billion to expand the Hydrogen Headstart program; over the next decade, $6.7 billion for a Hydrogen Production Tax Incentive for renewable hydrogen produced from 2027; $1.7 billion for the new Future Made in Australia Innovation Fund to support innovation, commercialisation, pilot and demonstration projects, and early stage development of renewable hydrogen, green metals, low carbon liquid fuels and clean energy technology manufacturing; and $1.9 billion to recharge Australia’s Renewable Energy Agency’s (ARENAs) current programs and to fund the $523 million Battery Breakthrough Initiative and $835 Solar Sunshot Program. • Continued investment of $48 million to reform the Australian Carbon Credit Unit (ACCU) Scheme, which presents opportunities to increase employment and First Nations participation. • From 2024-2025, $17.1 million over four years, to deliver the 2024 National Hydrogen Strategy including hydrogen infrastructure planning, social license and industry safety training and regulation. • $32.2 million for the first phase of the Guarantee of Origin Scheme, which focuses on renewable hydrogen in 2024-25, and subsequently, expands into green metals and low-carbon liquid fuels. Additionally, $20.9 million over four years from 2024-2025, for further consultation on incentives to support the production and demand of low-carbon liquid fuels, including development of a Guarantee of Origin Scheme. • A $399.1 million commitment for the Net Zero Economy Authority, which supports local net zero transformation for private and public investment, major project development, employment transition, and skills and community development. • A $505.9 million commitment, supported by up to $2 billion dollars in loans, equity and insurance for the Southeast Asia Economic Strategy, to 2040. The Budget is laced with good news – however, action is still needed to ease environmental approval uncertainties – to leverage the value of the new investments. Source: Australian Government – Federal Treasury.

Government Incentives in Canada An overview of major funding programs available to businesses to support their investments in innovation, capital, and the environment. About this event This event is hosted by IEEE Toronto Section, Industry Applications Chapter, and presented by Deloitte. Please join us on November 21st at 12:00 noon for an informative virtual presentation on Government Incentives, presented by Deloitte. During the session, an overview of the government incentives landscape in Canada will be provided, highlighting examples of some of the major funding programs available to businesses to support their investments in innovation, capital, and the environment. The session will also share an overview of the top best practices for pursuing incentives and examples of funding success stories. We will be covering: General concepts/processes around government incentives, tips and best practices for applying SR&ED program - R&D tax credit New Clean Economy ITC’s – refundable tax credits that fund capital investments in things like solar, wind, geothermal, hydrogen, carbon capture, nuclear, biomass systems Federal programs – Smart Renewables, FedDev Ontario (Business Scale up, AI, and Homebuilding technology streams), new ISED AI Assist funding Provincial programs – Southwestern/Eastern Ontario Development Fund, Automotive Modernization Program About the Speaker: Andrew is a Director in Deloitte’s Global Investment and Innovation Incentives (Gi3) group with over 15 years of experience helping clients on a variety of tax credits, and discretionary funding matters. His client base ranges from innovative SME’s to large multinational companies with direct experience across the manufacturing, automotive, clean energy, agriculture, food and beverage, Information Technology, and consulting engineering sectors. As a leader within our incentives practice, Andrew advises clients throughout the entire incentives' lifecycle. He has experience identifying and mapping a client’s strategic business initiatives to potential incentive programs, including SR&ED, Clean Economy ITCs, and a number of discretionary funding programs. Leveraging his expertise, Andrew and his team have assisted 100’s of clients with the preparation of their funding program submissions, supporting them through the due diligence and post submission review processes with CRA and various funding agencies. As a professional engineer, Andrew’s focus at Deloitte has been supporting on innovative companies related to their R&D, capital investments, environmental, talent development, and market expansion initiatives.

Found the renewable energy section very interesting: https://lnkd.in/e6WfP-qN

Philippine, Singapore companies join hands on project for early coal plant retirement MANILA - As South-east Asia looks to transition to cleaner energy sources, a Philippines-Singapore partnership is leading the way with the signing of a pact to explore the use of transition credits to accelerate the retirement of a coal-fired power plant. Philippine conglomerate Ayala Corporation’s energy unit Acen, Temasek-owned investment platform GenZero and Keppel signed a memorandum of understanding on Aug 16 to study using transition credits to decommission such a plant ahead of time. Transition credits are carbon credits arising from the emissions reduced through retiring a coal plant early and replacing it with cleaner energy sources. The pilot project involves the South Luzon Thermal Energy coal-fired power plant in Batangas, the Philippines, where the partners are exploring retiring the plant in 2030, 10 years ahead of schedule. This will be done through the use of transition credits, with the old power plant replaced by a clean energy dispatch facility. When completed, this project is expected to be one of the first converted coal-fired power plants in the world to generate transition credits, said the partners in a joint release on Aug 16. Singapore’s Minister for Sustainability and the Environment Grace Fu and the Philippines’ Secretary of the Department of Environment and Natural Resources Maria Antonia Yulo-Loyzaga witnessed the signing of the agreement on the sidelines of President Tharman Shanmugaratnam’s three-day state visit to the Philippines. On Aug 15, Mr Tharman and Philippine President Ferdinand Marcos Jr had witnessed the signing of a memorandum of understanding that will see Singapore and the Philippines strengthen cooperation on carbon credits. Under this agreement, both countries will work towards a legally binding implementation agreement for cross-border carbon credit transfers. Coal-fired power plants are the single largest source of carbon emissions globally, with Asia being the largest coal producer and consumer, led by China and India. The project will be carried out in collaboration with the Rockefeller Foundation’s Coal to Clean Credits Initiative and the Monetary Authority of Singapore’s Transition Credits Coalition. The project’s partners, such as GenZero, are optimistic that the South Luzon Thermal Energy pilot project could lay the path for other transition credits projects. “By demonstrating the successful retirement of coal-fired power plants and transitioning to cleaner energy sources though collaborative public-private sector partnerships across borders, the pilot could pave the way for other plants and countries in the region to follow suit,” said GenZero chief executive Frederick Teo in response to queries from The Straits Times. https://lnkd.in/g36T4deZ

Earlier today Climate Energy Finance (CEF) released a report, SUPERPOWERING UP, which analyses the current energy demand in the Pilbara region of Western Australia. According to the report, failing to decarbonise and electrify the Pilbara may jeopardise Australia’s $250 billion green iron ore industry. To mitigate this risk, the report states that we must urgently invest in the infrastructure required to produce and export green iron and ensure that Australia is a leader in the green steel industry. According to Clean Energy Investor Group Interim CEO Marilyne Crestias, "the key findings presented by CEF in its latest report highlight the immense opportunities within the Pilbara region of Western Australia to drive the decarbonisation of Australia's export economy.” “Measures such as a Pilbara common-user electricity grid infrastructure, an overriding public interest test for renewable energy developments, and First Nations' equity participation will address barriers to investment in large-scale firmed renewables in the region and offer greater certainty to investors, signalling that Australia is committed to transforming its economy and capitalising on global export opportunities.” “Failure to embrace these recommendations risks positioning Australia as a laggard in the global race to decarbonise, potentially missing out on crucial strategic export opportunities." CEIG commends CEF on SUPERPOWERING UP and supports its calls for urgent investment in renewable energy infrastructure in the Pilbara region. #CEIG #CEF #energytransition 

The article "$2-Trillion Funding Gap Casts Shadow over Energy Transition" highlights a pressing issue in the global energy transition: a substantial $2-trillion annual investment gap that must be filled to shift away effectively from hydrocarbons. Despite reaching a record $1.8 trillion last year, current investment levels are starkly insufficient, with BlackRock indicating that these need to nearly double to sustain the energy transition. The challenges in meeting this funding requirement are multifaceted. High interest rates are deterring investors, and amidst recent global events like the pandemic and the Ukraine war, investor sentiment has notably swung back towards the more traditional oil and gas sectors. Renewable energy companies face an uphill battle for profitability, prompting some to shut down or relocate, particularly from Europe to the U.S., where government support is more robust. BlackRock advocates for significant government intervention to bridge this gap, suggesting that strategies such as favorable energy pricing policies and market deregulation are essential. However, the suggestion of deregulation, which could lead to higher consumer electricity costs, is controversial, especially in developing countries with significant poverty levels. We suggest the LeafPays Super App could play a transformative role by offering innovative financial solutions to mobilize private sector funding for renewable energy projects. The Super App aims to streamline investment decision making it easier for investors to access and fund renewable energy initiatives directly. By integrating various financial services into one platform, LeafPays could attract a diverse range of investors, from individuals to large institutions, and provide them with tools to monitor and manage their investments efficiently. https://lnkd.in/dmkEUa75

The Humber Energy Board has called on the Government to help them "unlock" £15bn in private investment. Its new report, 'Delivering the Vision,' details how investment could be triggered and thousands of jobs created through the creation of a large-scale carbon transport and storage network for the region, speeding up the development of new hydrogen markets and prioritising additional power grid capacity for the Humber. With Hull well on the way to becoming a 'green city' are these measures the next logical step? https://loom.ly/sOwR6aw

Ramaphosa: Just energy transition will need R1.7 trillion: The Just Energy Transition Investment Plan for the five years 2023 to 2027 will need $98 billion (R1.7 trillion), if South Africa is to achieve its decarbonisation commitments by 2050, president Cyril Ramaphosa said.  Ramaphosa was speaking at the Climate Resilience Symposium in Pretoria on Monday where he said the plan would drive huge investments in the electricity grid, electric vehicles, economic diversification and skills development.  The Just Energy Transition Implementation Plan, which was approved by the cabinet last year, will guide South Africa’s transition to a low-carbon economy through the scaling up of renewable energy sources and reducing reliance on coal. The president said climate change is as much an economic issue as it is a scientific, human rights and a developmental issue because it has a direct and material effect across the economy. “Disruptions caused by climate change increase the costs of doing business, undermine competitiveness and also dampen prospects for increased employment. They result in lower tax revenue and increased expenditure on disaster relief,” Ramaphosa said.  The treasury, along with the Presidential Climate Commission, is to launch the Just Transition Financing Mechanism report at the three-day symposium. It will outline the financing of the energy transition and how the money will be raised.  “Climate finance is also crucial for our transition. We need substantial investments to build sustainable infrastructure, to develop green technologies and support social programmes,” Ramaphosa said.  According to the African Development Bank, just transition finance is different from climate finance. Climate finance relates to funding climate action, steps that can be taken to fight climate change, and is not specifically designed to consider the goal of leaving no one behind and financing the effects of decarbonising activities on vulnerable workers and communities.  A just transition finance approach must seek opportunities to connect green assets — which help to reduce energy, water and natural resource use — with positive social outcomes and the effects on workers and communities. The president announced that the Just Energy Transition Funding Platform would be launched in the next few months. According to the implementation plan, the purpose of the platform is to be a matchmaker between suppliers of grant funding and potential beneficiaries; to provide support for project originators to help them prepare plans and apply for grants and to provide the public with transparent data and analysis on the allocation of grant funds to projects. The president said the funding platform would be an important precursor to a broader Just Transition Financing Mechanism.  “We call on South African business to invest in the projects needed for a successful just transition in this…

The energy transition is one of the biggest investment thematics in private markets right now - and it is having second-order effects on a range of assets beyond the obvious areas of energy generation and transmission. For this month's Infrastructure Investor cover story, Anne-Louise Stranne Petersen and I consider how ports need to respond and adapt to the energy transition - whether that is in getting ready for sustainable shipping, helping to service the ever-increasing demand for offshore wind, or much more besides. Read the full story here: https://lnkd.in/gEbSf5QH Thanks to all who spoke to us for this story: Borreca, Anthony Stonepeak Peter Hannam IFM Investors Vikram Kumar IFC - International Finance Corporation Andrew Sellick Leisel Moorhead QIC Henrik Lundgaard Pedersen Associated British Ports Bill Rogers CPP Investments | Investissements RPC Pat Arnold Homecoming Capital Ian Brown UK Infrastructure Bank Tim Power Ancala Stefano D.M. S. NatPower Marine Kim Fejfer A.P. Moller Capital Christian Roy Amber Infrastructure Limited GeelongPort NSW Ports Port of Melbourne Port of Brisbane Pty Ltd

Financial renewable business guise; Yes from government It's the name of the game to the Australian government. This next year is one, of discretion to renewable investors in Australia, until they confirm their business investment. Then announcements aplenty can be expected. From Treasurer Jim Chalmers to Federal Climate Change and Energy Minister Chris Bowen, their judgement calls on appointments for a strong fiscal-pro climate change team is confirmed by Prime Minister Anthony Albanese. This Australian government is going to its people to hear what they want to hear. And, structuring a framework that believable investment will be accrued. In careful interactions will be $223.4bn Future Fund chair Greg Combet, starting this month. Aussies want to hear about renewable projects but clearly of the remunerative type. And the newly appointed Climate Change Authority chair is former NSW Minister for Energy and Treasurer Matt Kean. Mr Bowen recommended him. Out of Cabinet, these extra men to the Australian government in reducing gas emissions work will be doing the figures, on fiscally strong business, in clean energy companies. This is a hard and fast space Australians are in, leaving voters cynical at heavily contributing to climate change when our own lives need repair. The cost-of-living crisis has Australian voters that are plain sick of hearing the constant figures on wind, solar and hydro power rigmarole. The government releases energy bill rebates, starting July 1. Then, there is the CSIRO Board who are accountable to the Australian Government. CSIRO states there isn't enough time to reach the 2050 net zero target in nuclear energy form. Is this answer made to Labor Australian government ideals or a reality that CSIRO's scientific findings did not support a nuclear energy target in 2050. But the RBA has left interest rates on hold. The Australian Bureau of Statistics report in May: The unemployment rate rose to 4.0%. So Clean Energy Council says by 2030 Australia requires: 32,000 extra electricians 450,000 roles in construction and infrastructure projects Odds on, these are ambitious figures to meet. But TAFE fee-free is here. Australians want to hear openly that costs will go down. Yet, Mr Bowen then commits to the UAE's signature initiative in "agreeing to triple global renewable energy generation capacity and double global average annual energy efficiency improvements by 2030." Now the national renewables target is 82% by 2030. Opposition Leader Peter Dutton's platform is on nuclear energy. He is behind reaching the 2050 energy target. Walking down a few well-off eastern suburb streets in Melbourne: rooftop solar power is one in every three homes. Essentially, gigawatts is equal to 1 billion watts. In terms of making the global renewable electricity capacity, it is at 507 gigawatts more in 2023 than 2022, reports the International Energy Agency. The Australian: Picture of Climate Change Minister Chris Bowen