Submission to the Australian Treasury's consultation on 2025–26 Pre-Budget submissions

February 03, 2025

Amandine Denis-Ryan and Kevin Morrison and Jay Gordon and Simon Nicholas and Anne-Louise Knight

Download Full Version

31 January 2025

To: The Treasury
Re: 2025-26 Pre-Budget submissions

Dear The Hon Stephen Jones MP, Assistant Treasurer and Minister for Financial Services,

The Institute for Energy Economics and Financial Analysis (IEEFA) is grateful for the opportunity to present its submission to the 2025-26 Pre-Budget consultation. IEEFA is an energy finance think tank that examines issues related to energy markets, trends, and policies. The Institute’s mission is to accelerate the transition to a diverse, sustainable and profitable energy economy.

IEEFA is supportive of the government’s proposed financial support for green metals and green hydrogen, such as Hydrogen Headstart and the Hydrogen Production Tax Incentive. Australia is faced with growing overseas competition in the emerging green iron space, which could have significant implications for Australia’s biggest export.

In addition to existing and proposed new government funding, IEEFA believes some strategic interventions in energy performance and electrification could deliver strong emissions reductions and help alleviate the cost-of-living crisis and upcoming gas market tightness. IEEFA also believes that some government expenditure could be redirected to programmes that will be more effective in delivering a net zero emissions economy by 2050.

IEEFA recommends the government:

Prioritise funding energy performance and efficient, flexible electrification.
Support the deployment of distributed storage and demand flexibility.
Focus the funding of hydrogen on the most valuable, efficient use cases.
Remove funding from the Beetaloo and Middle Arm gas ventures.
Review an end date for the Fuel Tax Credits Scheme.

Please do not hesitate to contact us for any further information.

Kind regards,

Amandine Denis-Ryan – Chief Executive, IEEFA Australia
Kevin Morrison – Energy Finance Analyst, Australian Gas
Jay Gordon – Energy Finance Analyst, Australian Electricity
Simon Nicholas – Lead Analyst, Global Steel
Anne-Louise Knight – Lead Analyst, Australian Coal

Amandine Denis-Ryan

Amandine Denis-Ryan is CEO of IEEFA's Australia team. Amandine is a recognized expert in net-zero emissions transitions across the economy and led the development of the first domestic net-zero emissions pathway for Australia and subsequent updates.

Go to Profile

Kevin Morrison

Kevin Morrison is an Energy Finance Analyst, Australian Gas. Kevin works closely with the global oil and gas team to examine issues facing the Australian LNG and gas sector.

Go to Profile

Jay Gordon

Jay Gordon is an Energy Finance Analyst at IEEFA, focusing on the Australian electricity sector. He brings experience in modeling Australia’s energy system transition, including investigating the role of the electricity sector in helping the broader economy transition towards a net-zero future.

Go to Profile

Simon Nicholas

Simon Nicholas is IEEFA’s Lead Analyst for the global steel sector, as well as Asian seaborne thermal and coking coal markets.

Go to Profile

Anne-Louise Knight

Anne-Louise Knight is IEEFA’s Lead Coal Analyst for Australia. Her work examines the long-term outlooks for coal in Australia and major thermal and coking coal markets.

Go to Profile