Australia's Labor government on Monday pledged A$2 billion ($1.24 billion) in production credits to help support the country's four aluminium smelters switch to renewable power before 2036.

Aluminium is one of the most polluting nonferrous metals to make, as its current production is mostly powered by coal. Green aluminium usually refers to metal produced using solar, wind or hydropower.

The country's four aluminium smelters are run by Rio Tinto (RIO.AX), opens new tab(RIO.L), opens new tab and Alcoa (AA.N), opens new tab.

Prime Minister Anthony Albanese, in his latest election pitch, said the smelters would receive government support for each metric ton of low-carbon aluminium they produce. His centre-left government has made renewable energy a major theme ahead of a national election, which must be called by May.

The Australian government is targeting 82% of power supply to come from renewables by 2030, but remains well short of the target, at 40% now, even after pledging to underwrite new wind, solar and battery projects with more than A$40 billion.

"We want Australian workers to make more things here," Albanese said in a statement.

"We've got all the ingredients right here for a world-leading metals industry - from the best solar and wind resources, to the critical minerals and facilities, as well as a highly skilled workforce."

The Australian Aluminium Council said it had been seeking production credits for the aluminium sector, the sixth-largest producer of the metal in the world, to attract private capital and ensure the industry remains globally competitive amid rising costs and longer regulatory processes.

"These new aluminium production credits should provide some of the transitional support needed as Australia's energy infrastructure and systems develop, and energy pricing returns to competitive levels," Council CEO Marghanita Johnson said.