Australia has signed an agreement with the US to supercharge the development and deployment of new technologies to slash greenhouse gas emissions, as the Albanese government aims to put climate action at the centre of alliance.
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The deal was announced as the head of the International Energy Agency warned the worst of the global energy crisis might still be yet to come.
Climate and Energy Minister Chris Bowen and US Energy Secretary Jennifer Granholm announced a new agreement between the allies, alongside a separate deal between the CSIRO and the US National Renewable Energy Laboratory to develop clear energy technologies.
The new partnership will focus on the development of long duration energy storage technology, digital electricity grids and technology to support the integration of variable renewable energy, hydrogen, and carbon dioxide removal - including direct air capture.
"We have a lot to learn from each other and work together [on]," Mr Bowen said.
"This transformation is enormous, with massive opportunities and massive challenges."
Secretary Granholm said the ambitions of the Albanese government aligned with that of the Biden administration, which has a target of cutting emissions 50-52 per cent by 2030.
That is higher than the new Australian government's 43 per cent target, which is plans to legislate when the federal Parliament returns next month.
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Secretary Granholm described the target as exciting, noting suggestions - including from Mr Bowen himself - that the 43 per cent targets represented a "floor not a ceiling" to the government's ambitions.
"I have no doubt that this Australian administration is very bullish on being able to achieve that," she said.
The agreement was announced on the first morning of the Sydney Energy Forum, which has brought together political, business and industry leaders from Indo-Pacific nations to discuss the clean energy transition in the region.
The meeting is being held amid an international energy crisis fueled in part by Russia's invasion of Ukraine.
The crisis reached Australian shores earlier this year, with disruptions at local coal-fired power stations contributing to a perfect storm of factors which caused AEMO to temporarily suspend trading in the east coast market.
International Energy Agency executive director Fatih Birol told the forum that the world was in the midst of the first global energy crisis in history, which could yet worsen.
But Dr Birol also believed the crisis could prove a "turning point" as countries turn to clean energy technologies for environmental, economic and national security reasons.
He took aim at critics blaming the crisis on renewables, describing the claim as "absolutely wrong" and "factually and ethically ...misleading".
Dr Birol also warned against backing large-scale coal projects, saying that would present both a climate risk for the planet and economic risk for investors.