The Cement Industry Federation (CIF) has welcomed the Albanese Government’s announcement of a US$321m second round of the Powering the Regions Fund (PRF), saying it will help support emissions reduction across one of Australia’s most difficult-to-decarbonise sectors.
Australia’s cement manufacturing industry is critical to national growth and economic prosperity, but is also recognised as emissions intensive, trade exposed and hard to abate. CIF said the sector shares the Government’s goal of net zero emissions by 2050, however achieving that target will require long-term policy certainty and sustained investment to ensure local producers remain internationally competitive.
The new PRF round is aimed at trade-exposed facilities covered by the safeguard mechanism and vulnerable to carbon leakage from imports produced under weaker carbon regulations. CIF noted this includes cement manufacturers.
Under the programme, grants will be matched by industry to fund new equipment and technology to reduce Scope 1 process emissions, as well as research and development for innovative manufacturing approaches.
CIF members previously accessed PRF funding to upgrade kilns and processes, enabling greater use of alternative fuels and reducing emissions intensity.
CIF CEO Denise Spinks said decarbonising cement is a complex, multi-decade challenge requiring ongoing collaboration between government, industry and research, and the second PRF round will help accelerate progress.
