Australia's biggest ASX mining shares are trading higher alongside the S&P/ASX 200 Index (ASX: XJO) on Friday.
At the time of writing, the ASX 200 is up 0.43%.
Meantime, ASX mining giant BHP Group Ltd (ASX: BHP) is up 0.84% to $45.55. Fortescue Ltd (ASX: FMG) shares are up 0.64% to $28.26. Rio Tinto Ltd (ASX: RIO) shares are up 1.24% to $128.97.
Australia has long been known as one of the world's biggest suppliers of iron ore.
But the Federal Government wants to see Australia diversify and become a clean energy superpower, given we have large deposits of almost every mineral the world needs for the green energy transition.
Billions to be budgeted for Australia's clean energy revolution
Some funding schemes are already in place to support the development of Australia's renewable energy sector. But the Prime Minister intends to announce bigger plans on Friday evening.
According to the Australian Financial Review, Labor is planning a multibillion-dollar initiative along similar lines to the United States' highly successful $624 billion Inflation Reduction Act (IRA).
The IRA may be an inflation-fighting measure in name, but it is well-known for its clean energy incentives.
The IRA contains $US437 billion in subsidies specifically earmarked for projects in the clean energy space.
Fortescue executive chair Andrew "Twiggy" Forrest AO has previously commented that the IRA has encouraged his Fortescue Future Industries (FFI) business to invest in the US instead of Australia.
Prime Minister Anthony Albanese will deliver a speech in Newcastle tonight. In it, he will push Labor's case for investing multi-billions more to make Australia a renewable energy superpower.
He plans to say that achieving this will require the government to be a "partner … not just an observer".
Albanese will cite unprecedented investments by other Western governments to grow their clean energy industrial bases, such as the US, Europe, Japan and Korea.
The Prime Minister will say:
We don't have to go dollar-for-dollar in our spending, but we can go toe-to-toe on the quality and impact of our policies.
In all of this, we must be prepared to think big.
The new initiative will likely involve a combination of subsidies and co-investment offers to clean energy businesses.
What's happening in Australia's renewable energy sector?
Forrest has been at the forefront of the Australian mining industry's decarbonisation efforts and its diversification into renewable energy.
Fortescue aims to decarbonise its iron ore mining operations, while also developing Fortescue Future Industries. FFI is a separate business invested in green hydrogen and green ammonia projects.
The other two big miners are also targeting the global green energy transition for business development. Both BHP and Rio Tinto have invested heavily in growing their copper segments, for example.
Many other smaller ASX mining shares and ASX energy shares are solely focused on renewable energy opportunities, as well as mining the critical minerals essential to the world's green energy transition.
Examples among ASX mining shares include Core Lithium Ltd (ASX: CXO), which mines the white metal required to make electric vehicle (EV) batteries.
Other lithium players among ASX mining shares include Pilbara Minerals Ltd (ASX: PLS), Mineral Resources Ltd (ASX: MIN), and IGO Ltd (ASX: IGO), which also mines nickel.
Graphite is also essential for EV batteries, and ASX mining share Renascor Resources Ltd (ASX: RNU) is seeking investment for its South Australian operations.
