BCSDA welcomes consultation on $5 billion Net Zero Fund to accelerate industrial decarbonisation

Sydney, 29 September 2025 - The Australian Government, through the Department of Industry, Science and Resources, has opened consultation on the proposed design of a $5 billion Net Zero Fund - a significant policy development to anchor industrial decarbonisation and clean-technology manufacturing as strategic national priorities. Targeting large-scale industrial facilities and manufacturers of renewable and low-emissions technologies, the Fund aims to bridge the gap between ambition and investment reality at a time when global capital is seeking credible, scalable decarbonisation projects.

BCSDA will lodge a submission and convene members to shape a practical, investment-ready design ahead of the 15 October deadline.

The strategic timing aligns with international policy pressure from carbon border adjustment mechanisms (CBAMs) that apply a carbon price to certain imports based on their embedded emissions, the U.S. Inflation Reduction Act (IRA) which deploys large-scale incentives for clean energy and low-carbon manufacturing, and the European Green Deal (including its Green Deal Industrial Plan) which mobilises finance and standards to scale competitive green industry across the EU.

Investment need is significant: reaching net zero in Australia’s industrial sector could require $40–60 billion by 2035. Hard-to-abate sectors such as steel, cement, aluminium and chemicals face major cost and technology hurdles. For example, replacing natural gas in alumina refining with renewable electricity is estimated to cost $2–3 billion per facility. Similarly, domestic manufacturing of electrolyser components could create a $17 billion local market by 2040.

Key barriers to scale include high upfront CAPEX, long payback periods, unclear offtake, fragmented project pipelines, and a lack of tailored financing tools to de-risk private capital. Strategic coordination across industrial ecosystems, from project design through to procurement and disclosure, is essential to aggregate pipelines, lower unit costs, and accelerate replication.

BCSDA welcomes input from its members and partners as part of its submission. Interested organisations are encouraged to contact us to contribute their perspectives. Submissions for the consultation close on October 15. More details can be found here: https://consult.industry.gov.au/net-zero-fund?utm_campaign=Consultation%20updates&utm_source=IGA%20Newsletter

About BCSD Australia 

The Business Council for Sustainable Development Australia is a non-profit organisation dedicated to operationalising sustainable development practices among Australian businesses.  BCSD Australia was established in Australia in 1991 and works with over 70 leading global businesses and other organisations to drive systemic transformation in key sectors, advocating for sustainable leadership and rewarding action through education, partnerships, and policy influence.

In 2014 the organisation was appointed Australia’s Network Partner for World Business Council for Sustainable Development (WBCSD).

BCSD Australia’s members believe that by integrating social and environmental impacts with financial results, business lowers its risk profile, makes better decisions and creates the solutions needed to meet the Sustainable Development Goals.

BCSD Australia’s members include leading Australian businesses, from all sectors, who share a commitment to economic, environmental and social development. It represents member companies, public sector enterprises and institutions, BINGOs and community organisations, which in turn represent 120,000 + Australian employees. www.bcsda.org.au.

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For further information contact: Andrew Petersen, CEO, Business Council for Sustainable Development Australia, +61 412 545 994