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newables-based export industry. Our stable po- litical, regulatory and investment framework, in particular, sets us apart. These potential future industries could eclipse the value of current fossil fuel production, es- pecially if Australia were to become a large pro- ducer of “green steel”, processing iron ore mined in Western Australia using renewable energy. Renewables projects are also planned for the Northern Territory, with a combined commercial investment in the tens of billions of dollars. In the case of green steel, the electricity-sup- ply capacity alone would require hundreds of billions of dollars invested, not accounting for the necessary industrial infrastructure – and this could be but a taste of what’s to come. In fact, in- vestment volumes above the trillion-dollar mark are possible. The government’s imperative Any major investments in Australia will be made by private investors, not governments. However, the creation of a new energy economy hinges on state and federal governments creating suita- ble regulatory frameworks to attract large-scale green-industry investments and international capital. Governments need to ensure that Aus- tralian communities come out on top, firstly by making arrangements for taxation and royalties that attract private investment while financially benefiting the community. The federal government also has an important role in supporting R&D and pilot projects through the Australian Renewable Energy Agency (ARE- NA) and the Clean Energy Finance Corporation (CEFC). Both agencies are expected to invest in a much wider range of activities this decade, but will need much greater funding to be truly effec-

tive catalysts of industrial change. Finally, Australia needs to signal that it is on board with global action on climate change. Aus- tralian governments will be tempted to try to walk both sides of the road – by getting into new green industries while supporting the continuation, or even the expansion, of the coal and gas industry -- which could become a major obstacle to pro- gress. Instead, we must be committed to phasing out fossil fuels and unequivocally supporting the shift to a decarbonised world economy. That means devising a national strategy for slashing emissions to net-zero while establishing a clean-energy export industry, and supporting this strategy through policy and public spending. Any- thing less risks the country missing out on a starring role in one of this century’s big economic booms. Frank Jotzo is a professor at the Australian Na- tional University’s Crawford School of Public Policy, and Director of the Centre for Climate Economics and Policy at Australian National University. He is an environmental economist, and his research focuses on policy for climate change and energy, in the context of economic reform and development.

UNLOCKING AUSTRALIA’S BIOENERGY POTENTIAL Bioenergy can fuel Australia’s energy transition while also creating jobs in regional communities, writes Angelo Dabala . L ike the rest of the world, Australia faces an immense undertaking in meeting its climate ambitions. We need to not only

reduce emissions, but also change our rela- tionship with the natural environment. How we produce and use energy can be a big part of that change; renewable energy is a key that is slowly being turned. Wind, solar, wave, and bioenergy are some of the renewable energy sources that will need to be deployed at large scale to sup- port this transition, and we need them all. My specific area of interest is bioenergy, which can have an enormous impact on our energy transition, while also meeting many of our social and environmental needs for the future. Bioenergy – energy produced from organ- ic material – is as old as humankind. Today, we can produce bioenergy sustainably by capturing all the energy, emissions, and res- idues, and putting these to further use or re- cycling them. A product of this process can be biofuels, re- newable replacements for fossil fuel-derived petrol, diesel, and aviation fuel. Producing bioenergy and biofuels from crop residues or

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How soon will Australia make green steel? | The Business | ABC News

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