US President Joe Biden and Australian Prime Minister Anthony Albanese have announced a new era of cooperation with climate and clean energy cooperation among the three pillars of the alliance.
In May, the two countries launched the Australia-United States Climate, Critical Minerals, and Clean Energy Transformation Compact to make climate cooperation the third pillar of the alliance. Additionally, the Compact aims to counter climate change’s threat to global security and prosperity.
The US and Australia have convened a ministerial-level United States-Australia Clean Energy Dialogue under the Compact. The aim is to collaborate on clean energy supply chains, leveraging their comparative advantages and capabilities. This includes a battery supply chain working group to deepen manufacturing capabilities and research battery technology. A Memorandum of Understanding will be established between the US Department of Energy Office of Clean Energy Demonstrations and Australian entities. The Australia-United States Clean Energy Industry Council will be established to advise governments on clean energy industry development and cooperation.
Additionally, the Australian and US governments have announced a collaboration to create an Indo-Pacific Net-Zero Transition bond series to fund small and medium-sized enterprises focused on clean energy transition, recognising climate change as the primary threat to livelihoods, security, and ecosystem wellbeing in the Indo-Pacific region.
The US and Australia also plan to improve access to the Green Climate Fund and other multilateral funds, particularly for vulnerable countries like least developed countries (LDCs) and small island developing states (SIDS). This will be achieved through targeted bilateral technical assistance from USAID to LDCs and SIDS, and in coordination with DFAT’s program supporting Pacific Island countries.
The US-Australia Critical Minerals Taskforce, led by the U.S. National Security Council and partnered with the U.S. Department of Commerce and Australia’s Department of Industry, Science and Resources, has been launched to increase investment in critical minerals mining and processing projects and enhance market transparency. The Taskforce has identified areas for joint action, and a Memorandum of Understanding between CSIRO and the United States Geological Survey aims to deepen relationships between US and Australian researchers, including on minerals processing.
Prime Minister Albanese has reiterated his support for President Biden’s request to include Australia as a “domestic source” in Title III of the U.S. Defense Production Act. This would improve collaboration between the two countries, create new investment opportunities, and enhance the diversity and resilience of supply chains, thereby enhancing the US’s investment in Australia’s critical minerals and technologies.
In recognising the need to address non-CO2 pollutants as a crucial driver of global climate change, Australia and the US also announced plans to take strong action on methane mitigation and consider prospects to support developing countries in the Indo-Pacific with capacity assistance. The US commends Australia’s efforts to address all greenhouse gases, including methane. Under the Climate Compact, they plan to strengthen cooperation on non-CO2 gases and support the Montreal Protocol Multilateral Fund’s work to reduce hydrogen fuel consumption and improve energy efficiency for the HCFC phase-out and HFC phase-down.
