Any changes to the United States’ climate policy by the Trump administration could result in greater investment to Australia’s critical minerals and green energy industries, said Prime Minister Anthony Albanese.
Albanese’s remarks come as Trump signals a possible reversal of President Joe Biden’s climate initiatives, specifically the Inflation Reduction Act, which provides billions in subsidies for clean energy development.
“There are potential benefits if there are changes in US policy. We'll wait and see what occurs,” Albanese told reporters during the APEC summit in Peru, underscoring the economic potential of climate action for Australia.
Australia’s rich deposits of copper, vanadium, cobalt, and lithium — key minerals for electric vehicle batteries — position it as a competitor for global investment in critical minerals and clean energy.
Albanese noted that the Inflation Reduction Act has drawn significant capital to the US, adding, “If those incentives aren't there, then that has implications for the nature of the global economy.”
While not pre-empting policy changes, he highlighted Australia’s potential as a supplier of essential resources and green hydrogen, supported by renewable energy.
The Prime Minister also revealed that in his recent call with Trump, he had raised the issue of trade and said, “The United States has a trade surplus with Australia, so it is in the United States' interests to trade fairly with Australia”.
Australia won an exemption from US tariffs for its aluminium and steel exports during Trump’s first presidency.
Amid rising strategic competition between the US and China, Albanese said he thinks Australia “can play a role as a middle power ... we of course have an alliance with the United States, but China is our major trading partner.”