Australia's Labor government has significantly reduced its investment in green hydrogen export ambitions and clean manufacturing, with federal budget cuts totaling $1.3 billion. The government is now expected to spend $1.9 billion less on production credits for early-stage hydrogen projects by 2030, and $300 million has been cut from schemes supporting solar panel and battery manufacturing. These reductions stem from a global shift in investment influenced by Donald Trump's election as US President in late 2024 and subsequent policies favoring fossil fuels, which also impacted Fortescue's decision to abandon a green hydrogen plant in Arizona. Despite these setbacks and expert opinions suggesting overambition, Energy Minister Chris Bowen maintains the government's commitment to green hydrogen as crucial for emissions reduction amidst global oil supply constraints.