The Federal Government has announced that it will fast-track the Guarantee of Origin scheme for it to commence operation in the second half of 2025.
As part of the $22.7 billion Future Made in Australia program, the Guarantee of Origin scheme is expected to provide the emissions accounting backbone to support the development of Australia’s green industries.
Once developed, the scheme will issue digital certificates that allow producers, exporters and users to prove where a product was made, and the emissions associated with its production and transport.
The Federal Government said that the scheme will commence with hydrogen and will then expand to include low carbon liquid fuels like sustainable aviation fuel, green metals like steel and aluminium, and biomethane and biogas.
The certificates will be used to establish eligibility for tax credits under the $6.7 billion Hydrogen Production Tax Credit announced in the 2024–25 Federal Budget and are expected to play a crucial enabling role in the development of other green industries.
The Guarantee of Origin scheme is supported by the Renewable Electricity Guarantee of Origin scheme, which will issue digital certificates proving when, where and how renewable energy was produced. The scheme will replace the RET in 2030 as the framework for certifying renewable electricity.
The total committed funding for the Guarantee of Origin scheme is more than $70.4 million.
The Federal Government is currently considering the submissions made as part of its consultation into design questions.
The Federal Government said that it is also working to finalise the enabling legislation for this reform so it can commence operation in the second half of 2025.
Federal Assistant Minister, Jenny McAllister, said, “The Guarantee of Origin scheme is the most important green industry program you never heard of.
“As the world decarbonises, it will be increasingly important for businesses to be able to account for the carbon emissions associated with their products.
“Guarantee of Origin is a key to new market opportunities for Australian energy exporters in the race to net zero.
“The Guarantee of Origin scheme will give Australian companies a competitive advantage by providing government backed certification of the carbon intensity of key green products.”
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