Climateworks supports the government’s creation of funds such as the National Reconstruction Fund (NRF).

We see a strong benefit from government financing to support the rapid transition to a net zero global economy, back regional industry and deliver secure jobs of the future.

We recommend the design of the investment mandate and investment priorities for the NRF consider how all priority areas of the fund will support the achievement of Australia’s emissions reduction targets.

This would allow the fund to prepare Australia to thrive in a net zero global economy while achieving the goals of leveraging Australia’s natural and competitive strengths, supporting the development of strategically important industries and shoring up supply chains.

Australia’s natural assets in mineral resources and renewable energy capacity position Australia to make the most of the global net zero opportunity.

The government has the opportunity to design the NRF to support Australia’s climate policy priorities, emissions reductions targets, and long-term goal of net zero emissions in line with the Paris Agreement.

Climateworks recommends this applies across the fund and not only to the priority area for renewables and low-emissions technologies.

Ensuring all government investment considers emissions reductions impact is especially urgent given the window to keep global warming within 1.5°C is still open, but narrowing.

Climateworks’ submission includes recommendations on the investment mandate, as well as recommendations based on key findings for industry from our Australian Industry Energy Transition Initiative project and our work on Renewable Energy Industrial Precincts (REIPs) as well as research by our food, land and oceans system team.