United States Secretary for Energy, Jennifer Granholm, and Australian Minister for Climate Change and Energy, Chris Bowen, held the second United States-Australia Ministerial Dialogue on Clean Energy on the margins of the G20 Energy Transitions Ministerial in Foz do Iguaçu, Brazil on October 4, 2024.
The Ministerial Dialogue on Clean Energy marked the culmination of a year of progress since its inaugural meeting to realize the shared commitment to elevate climate and clean energy cooperation to the third pillar of our alliance, as set forth by leaders in May 2023 through the Climate, Critical Minerals and Clean Energy Transformation Compact (Compact) and reinforced by Prime Minister Albanese’s meetings with President Biden in Washington in October 2023 and Delaware in September 2024.
Ministers discussed the need to work together to support and secure clean solar supply chains, which may leverage both countries’ significant investments and complementary resources in their respective solar industries in support of our leaders’ intent to collaborate on clean energy supply chains. As a first step to investigating the feasibility of an end-to-end solar supply chain, Ministers noted their intent to conduct and report on techno-economic market studies on the solar industry, including polysilicon processing and trade. This work will leverage solar cooperation between ARENA and the U.S. Department of Energy (DOE), and the Australia-U.S. Clean Energy Industry Council.
Ministers acknowledged the significant economic opportunities of the global clean energy transformation to net zero by mid-century. They emphasized that both countries’ significant investments in their renewable energy industries, through the US Inflation Reduction Act and Australia’s Future Made in Australia plan respectively, offered unparalleled opportunities for collaboration to shape a transformed global energy future. Ministers voiced their expectation that, through the Compact, joint U.S.-Australia efforts would support partners in the Indo-Pacific as they meet their decarbonization and supply chain diversification goals.
Ministers reaffirmed that the climate crisis represents the existential challenge of our time and committed to even closer cooperation to achieve a fully or predominantly carbon pollution-free power sector by 2035, net zero greenhouse gas emissions by 2050, reaffirming the Paris Agreement temperature goal and reiterating our resolve to pursue deep, rapid and sustained reductions in greenhouse gas emissions to keep 1.5 C within reach. In support of last year’s G20 leader’s commitment to tripling renewable energy and doubling energy efficiency by 2030, both countries recognized the need for rapid global deployment of clean energy technologies this decade, including support for global goals for energy storage in the power sector of 1500 GW by 2030 and pursuing a 1.5 C-aligned goal for grids modernization and buildout to ensure rapid and reliable electricity delivery to those most in need. Both countries also reaffirmed the work of the Carbon Management Challenge to support a global goal of advancing carbon management projects that would collectively reach gigatonne scale by 2030. The United States welcomed Australia’s bid to host COP31 in 2026 in partnership with Pacific countries, noting its opportunities to accelerate global climate action and clean energy transition.
Ministers announced Australia as an international collaborator of the U.S DOE’s Long Duration Storage Shot™, a critical part of the ambitious Energy Earthshots™ Initiative. Australia and the United States intend to work together towards global ambition in line with the Long Duration Storage Shot™, taking into consideration national circumstances, through the Compact to pursue innovative breakthroughs that drive down technology costs for long duration energy storage, accelerate decarbonization of the electric grid, and ensure that a clean energy future is accessible and affordable for all communities. Both countries plan to meet annually and share best practice, strategies and progress. Ministers also discussed interest in future work together on upgrading homes and reducing energy bills and noted Australia’s interest in the Affordable Home Energy Shot™ under the Energy Earthshots Initiative for potential future collaboration.
- Additionally, Ministers discussed significant progress towards the implementation of key initiatives under the Compact, steering the future direction of our energy partnership, including through:
- Commencing two projects under the Net Zero Technology Acceleration Partnership (NZTAP), supported through joint funding by the Australian and U.S. Governments. Agreed projects include:
- Independent System Operator Technical Secondment program co-delivered by the U.S. National Renewable Energy Laboratory (NREL) and the Australian Energy Market Operator which will help both countries to operate modern, secure and reliable grids to accommodate increased renewable energy and energy storage over coming decades.
- Grid Integration of Utility Scale Batteries assessment report by NREL and CSIRO, to address the urgent need to store and dispatch cleaner energy.
- Agreement to renew a Memorandum of Understanding (MOU) between CSIRO and NREL, which will provide a strong foundation to deepen technology R&D cooperation focussed on clean energy sectors.
- Commitment to sign an MOU between the U.S. DOE and ARENA this year. The MoU encompasses technology cooperation and knowledge sharing, which may include renewable energy, energy storage, distributed energy resources, hydrogen, and First Nations Engagement.
- Intent to hold an inaugural Dialogue on Engaging Tribal and First Nations Peoples in the Energy Transition in October 2024.
- Progress in negotiations on a U.S. DOE attaché position in Canberra.
- Commitment to hold the inaugural Australia-U.S. Clean Energy Industry Council in 2025. The Industry Council will establish a durable architecture for business connections and will draw on the expertise of stakeholders to advise on clean energy industry development and cooperation.
- Establishment of ongoing technical exchanges on trade and climate issues between the Australian DCCEEW and the U.S. DOE. As Leaders recalled in October 2023, Australia and the U.S. are committed to policy exchange on emissions accounting methodologies and emissions-intensity data to support our shared climate and green industrial goals.
- Recognition of the ongoing work through technical exchanges on methodology and data with the White House Climate and Trade Taskforce.
- Ministers noted the significance of the annual senior official Australia-United States Energy Security Dialogue. They welcomed officials’ intent to hold the next Dialogue in the United States in 2025 and continue to use the Compact Action Plan to drive ambitious solutions to shared challenges on energy supply chains.