Australia and the United States agree to clean energy compact

press release

May 23, 2023

Australia and the United States have come to an agreement under a climate, critical minerals and clean energy transformation compact establishing climate and clean energy as a central pillar of the Australia-United States alliance.

Australia and the United States recognize the importance of addressing the climate crisis as a critical component of the bilateral relationship. The compact is a framework that is designed to advance ambitious climate and clean energy action this decade, at home and abroad.

The framework intends to coordinate policies and investments to support the expansion and diversification of responsible clean energy and critical minerals supply chains, accelerate the development of markets for established and emerging technologies, meet the growing energy and adaptation needs of the Indo-Pacific, and enhance the region’s role as a driver of resilient and sustainable global prosperity.

Under the leadership of Australia’s Department of Climate Change, Energy, Environment and Water and the U.S. National Security Council, Australia and the United States have decided to establish a dedicated forum on clean energy industrial transformation to set the core objectives of this compact. Through this mechanism, the relevant departments and agencies from both countries intend to coordinate the implementation of their respective clean energy supply chain strategies and develop a new action plan by the end of 2023 to encourage stronger industrial collaboration and accelerate progress toward the two nation’s ambitious climate goals.

Both countries are determined to, within 12 months, identify concrete actions toward the objectives laid out in this compact. As objectives are met and new challenges arise, the compact is designed to serve as an enduring and evolving mechanism to deepen cooperation on integrating diverse, responsible and innovative supply chains, accelerating the net-zero transition, and driving climate ambition and action in the Indo-Pacific and beyond.

This work also intends to build on the efforts that will be carried out through a new, ministerial-level dialogue between the Australian minister for Climate Change and Energy and the U.S. secretary of Energy in support of the compact, Australia-U.S. Net Zero Technology Acceleration Partnership, U.S.-Australia Energy Security Dialogue, and other existing bilateral avenues of engagement.

Underscoring the central role of critical minerals to the clean energy transformation, Australia and the United States are also establishing the ministerial-level Australia-United States Taskforce on Critical Minerals, to be led by principals from the U.S. National Security Council and Australia’s Department of Industry, Science and Resources, with engagement from key stakeholders across industry and relevant government agencies. The taskforce signals the two countries intent to deepen bilateral collaboration on the critical minerals and materials that are vital to clean energy as well as defense supply chains. The taskforce is also intended to work with industry leaders to develop and expand reliable, responsible and secure global access to critical minerals, strengthening global supply of critical minerals through the development of a shared energy industrial base.

Read more about the agreement here

Photo by Shutterstock


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