The Australian federal government is set to invest over $22 billion in the Future Made in Australia initiative, aimed at boosting national manufacturing capabilities in renewable energy and critical minerals over the next decade.

A recent government inquiry has recommended that Parliament pass the necessary laws to implement this ambitious manufacturing strategy.

To secure the passage of this manufacturing plan in the Senate, the Labor party will need support from either the coalition or the Greens.

The Greens have been in negotiations with the government regarding the manufacturing plan and have delayed their final stance until the inquiry report was released.

However, the Greens have expressed concerns about the economic uncertainty surrounding the proposed manufacturing strategy and have presented nine recommendations to the government.

Opposition from Liberal senators Andrew Bragg and Dean Smith highlights the contention surrounding the proposal, as they argue it would enhance union influence in the manufacturing sector and label it a flawed policy.

Additionally, there are warnings from senators that the proposed laws could lead to compulsory unionism in government-funded projects.

Labor senator Jess Walsh, who chaired the inquiry, emphasized that funded projects must prioritize safety and community engagement to ensure public benefits from the initiative.

In a broader context, Greens senator Nick McKim has criticized the government's gas strategy, asserting that Australia's future should not rely on coal, oil, and gas.

He advocates for the electrification of homes and businesses, reinforcing the Greens' position against supporting fossil fuel projects.

As the debate continues, the outcome of the negotiations and the inquiry's recommendations will be crucial in shaping Australia's manufacturing landscape.