Budget commitments to green energy, sustainable waste management & water security
State and territory budget updates
Recent state and territory budgets in Australia have committed significant funding to green energy, sustainable waste management, and water security, reflecting regional priorities and a collective focus on addressing environmental challenges.
The recent state and territory budgets have collectively made strong commitments to green energy, sustainable waste management and water security, reflecting a forward-looking approach to the environmental challenges facing Australia. The varying allocations across states reveal regional priorities, and an insight into how states are addressing their unique needs and circumstances.
A commitment to providing low-cost energy and transitioning to cleaner energy is evident across certain states, including New South Wales’ $3.1bn allocation to developing Renewable Energy Zones and Victoria's $1bn investment in constructing one of the world’s largest battery projects. The ACT Government continues its Integrated Energy Plan (IEP) which aims to transition homes, businesses, and transportation away from fossil fuels, while Queensland has allocated $16.5bn towards renewable energy and storage projects.
To support recycling and circular economy goals, states have made some targeted funding allocations. For example, Victoria has provided additional funds to extend the waste levy grant program for charitable recyclers and to support the Recycling Victoria mandate. Queensland has prioritised the continued delivery of its $2.1bn waste package, which includes funding for local government waste management plans, grants to address illegal dumping, and annual payments to councils to shield households from financial impacts of levy increases.
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Water security remains a focus, with substantial investments across all states aimed at enhancing water quality, improving drought resilience, flood mitigation and developing critical water infrastructure. There are also collaborative efforts between Federal and State Governments to tackle water related challenges such as The National Water Grid Fund, which supports state projects such as those in the Northern Territory and development through state-owned water businesses such as Seqwater in Queensland and the continued investment of $2.8bn for the Alkimos Desalination Plant in Western Australia.
The emphasis on waste recycling, water security and renewable energy is timely given the growing impacts of climate change, and global shift towards a circular economy. However, the success of these initiatives will depend on clear policy frameworks.
At the heart of Sphere's mission and vision is sustainability. The earth's natural resources are limited and under considerable pressure. Governments and corporations are recognising the need to adjust their business models to one which takes into account environmental performance and social impact.
While the budgets present clear pathways for investment, project developers face uncertainty related to policy continuity and shifting government priorities which could impact long term planning and investor confidence. Governments should aim to reduce regulatory hurdles in support of strategic initiatives.
Collaborative initiatives between Federal and State governments, such as the National Water Grid Fund, highlight opportunities for large-scale projects and shared risk between investors and the government. The focus on renewable energy and water security aligns with global environmental trends, offering opportunities in a growing market for sustainable project development.
A summary of the relevant budget announcements, as shown below, further emphasises the need to have a good understanding of the opportunities, challenges and complexities in relation to new environmental infrastructure. Sphere’s focus is on supporting our clients to seek out and secure these opportunities and help navigate the challenges related to the development and delivery of any such projects.
Budget updates 2024-2025
Cwth Government Budget announcements: the Federal Government Budget was delivered in May-24. Key announcements included:
A new 'front door' for priority projects, and streamlined and strengthened approvals;
$6.7 bn production tax incentive for the production of renewable hydrogen over ten years;
$1.7 bn to promote net zero innovation, including for green metals and low-carbon fuels;
$1.5 bn to strengthen battery and solar panel supply chains through production incentives; and
$831m to enhance water security, improve drought resilience in rural communities and reduce agricultural emissions, including additional funding from the National Water Grid Fund.
QLD Government Budget announcements: the Queensland Government 2024-25 Budget was delivered in Jun-24. Key announcements included:
$247.8 mn over 5 years for continued delivery of the $2.1 bn Waste Package, which includes funding for programs supporting waste management, such as local government waste management plans, grants to address illegal dumping and annual payments to councils to ensure no impact on households;
Approximately $26bn total capital investment over 4 years as part of the Queensland Energy and Jobs Plan. The plan includes the following budgetary allocations:
$16.5b for renewable energy and storage projects;
$8.5bn for transmission infrastructure, including CopperString 2032, SuperGrid and Renewable Energy Zone Transmissionworks.
Investments in state-owned water infrastructure to enhance water security, flood resilience, and dam safety. Projects receiving funding include:
$311m for the Fitzroy to Gladstone Pipeline;
$26m for the Mount Crosby Flood Resilience Program;
$56m for the Toowoomba to Warwick Pipeline;
$303m for dam improvements; and
The Regional Development, Manufacturing and Water Portfolio’s 2024-25 capital programs totals which includes capital purchase of more than $1bn and grants equating to $147m .
NSW Government Budget announcements: the New South Wales Government 2024-25 Budget was delivered in Jun-24. Key announcements included:
$3.1bn to develop five Renewable Energy Zones in NSW, providing low-cost energy through wind, solar, storage, along with ~$129m for regional road upgrades and infrastructure at the Port of Newcastle;
Additional grants equating to ~$88m focusing on restoration, rehabilitation, education and waste activities. Additionally, $43m is included in the Budget to boost the transformation of the waste and recycling industry; and
$117m to repair critical water and sewerage infrastructure, improve water efficiency and drought resilience across the state, including:
$25m for the Restoring the Darling Baaka River;and
$43m for water infrastructure improvements and efficiency across the state
ACT Government Budget announcements: the Australian Capital Territory 2024-25 Budget was delivered in Jun-24. Key initiatives worth over ~$273m were announced and include:
A new regulatory framework for the electricity network, and measures to phase out gas appliances and improve water use efficiencies;
$71m to support transport improvements such as electrification support for EV infrastructure and road network enhancements;
Grants for electrification upgrades;
Continuation of the ACT Government’s Integrated Energy Plan (IEP) which aims to transition homes, businesses and transport away from fossil fuels. The Budget allocates $58m for the Vulnerable Home Energy Support Scheme and $5m for the Community Partnership Electrification Program; and
Measures to improve water use efficiencies in the Territory.
NT Government Budget announcements: the Northern Territory 2024-25 Budget was delivered in May-24.Key initiatives includes:
Delivery of an infrastructure program which allocates $60m to environmental protection, focusing on water quality improvements and flood mitigation projects;
Major investments include $14m for water security in remote areas and significant flood mitigation efforts.
The Territory is expected to receive $210m from the National Water Grid Fund over three years (2024-27) to develop critical water infrastructure projects, including the Manton Dam return to service and the Adelaide River off-stream water storage.
VIC Government Budget announcements: the Victorian Government 2024-25 Budget was delivered in May-24. Key initiatives and announcements include:
The State Electricity Commission (SEC) is allocating $1b initial investment to build one of the world’s largest battery projects;
Additional energy investments include:
$35m for offshore wind generation and infrastructure planning;
$10m for spatial risk mapping;
$7m for environmental assessments; and
$12m for VicGrid to oversee renewable energy transmission infrastructure development.
$691m allocated towards critical water projects across Victoria including protecting and restoring the state’s waterways and catchments, improving water access and diversifying water supplies.
Additional investment to continue the waste levy grant program for charitable recyclers and progress the state’s circular economy targets as well as support Recycling Victoria boost recycling.
WA Government Budget announcements: the Western Australia Government 2024-25 Budget was delivered in May-25. Key initiatives and announcements include:
$324m for electricity grid planning and infrastructure, and $148m for electricity network infrastructure in the Pilbara;
$500m to support the state’s Strategic Industries Fund to develop WA’s industrial areas; and
$320 m for upgrading vital water infrastructure in Western Australia to unlock development and ensure water security, including:
$80 m for water and wastewater pipeline renewals;
$97 m for regional water security enhancements; and
Continued investment to build the $2.8 bn Alkimos Desalination Plant project.
SA Government Budget announcements: the Southern Australia Government 2024-25 Budget was delivered in Jun-25. Key initiatives and announcements include:
$28m over four years to enhance SA’s environmental, social, and governance credentials, supporting sustainable economic activity, environmental protection and biodiversity conservation;
$24m over five years to promote net zero emissions in agriculture through innovation, on-farm solutions, and upskilling, aligning with the state’s goal to achieve net zero emissions by 2050;
$4.8m over four years to establish a regulatory framework for EPC licenced entities to reduce emissions;
$26.3 m allocated over five years to support River Murray operations, maintenance, monitoring programs, and the state's new water licensing system (mywater) for the river system's health.