Renewable energy emerged the poor cousin to fossil fuels in the federal budget, with experts claiming Labor had kept a $19 billion gravy train running on the back of the global fuel crisis.

In 2025, renewables were sold to Australians as nation-building, but in 2026, critics argue they have been de-emphasised in the climate transition, instead being framed as economic self-defence.

Climate groups criticised Treasurer Jim Chalmers’ claim both clean energy expansion and domestic fuel reform was necessary for Australia to achieve energy sovereignty.

“This budget maintains the $19 billion gravy train for big fossil fuel corporations,” said Climate Council chief executive Amanda McKenzie.

“That is $19 billion in the wrong direction, keeping us tied to foreign oil, rather than supporting the expansion of renewable energy solutions that Australians want to deliver a safer, cleaner, more secure energy future.

“Unfortunately, this budget leaves too many Australians wanting.”

The government has argued that through the budget’s reforms, Australians will have more choice in how they power their homes, businesses and vehicles, reducing their dependence on imported fuels and vulnerability to high global energy prices.

They’ve cut $4 billion from the climate transition, and allocated $46 billion to fossil fuel subsidies.

Senator Larissa Waters, Greens leader

However, the budget’s clean energy policy drew criticism from the Greens, who said several measures amounted to a significant scaling back of essential climate transition spending.

Senator Larissa Waters, the Greens leader, said: “This budget should have taxed gas exports. Instead they’ve cut $4 billion from the climate transition, and allocated $46 billion to fossil fuel subsidies.”

The budget highlights the delivery of 6.8 gigawatts of renewable energy in 2025 and more than 370,000 home batteries through the Cheaper Home Batteries program since July 1, 2025, adding more than 10 gigawatt hours of storage capacity nationwide.

Pointing to the more than four million Australian households that now generate their own solar power, the government is projecting 2 million homes will have battery storage by 2030.

Still, critics question whether the current measures will be a potent enough tool to propel the clean energy transition forward, indicating that Australia is yet to realise its renewable industrial potential.

Matt McKee, Beyond Zero Emissions’ chief researcher, told Central News: “Our world-class solar and wind resources could be harnessed to reduce our emissions from energy and power a new generation of domestic manufacturing for clean technology supply chains – including solar, wind, batteries, heat pumps and commercial electric vehicles.”

Main image by Andrew Baker/Wikimedia.