The Albanese government's third federal budget has been met with cynicism from climate and sustainability groups for its dismissal of Indigenous economic engagement in its $23 billion clean energy transition funding allocation.

While putting more than $20b into the energy transition, the 2024 Budget also allocated $54b over five years in fossil fuel subsidies and $32.6m over four years to establish regulatory frameworks for Carbon Capture and Storage.

First Nations people were expected to see a decent chunk of the $23b over 10 years to accelerate Australia's transition to clean energy, but there was little to zero incentive to help Indigenous communities become economic players in the renewables race, despite more than 60 per cent of land and sea required for projects to achieve that being on land over which First Nations people hold legal rights and interests.

While the billions promised over 10 years would kickstart the clean energy transformation through the government's Future Made in Australia package, its measures in emissions reduction do not match the scale needed to address the climate and biodiversity emergency, according to experts.

While funding energy transition, the government also continues fossil fuel subsidies, with $54bn over five years for the fuel tax credits, and $32.6m over four years to establish regulatory frameworks for carbon capture and storage.

Senior economist at the Australia Institute, Matt Grudnoff, said there was a lack of ambition from the government's third Budget to address social inequality.

"The 2024-25 Federal Budget is a missed opportunity for the Government to solve the key underlying structural problems causing growing inequality, focusing instead on small announceables," he said.

Australian Conservation Foundation CEO Kelly O'Shanassy said while one side of the Budget allocated significant funding to help build a manufacturing and export industry powered by clean renewable energy, big money was still going to fossil fuel development.

"On the other side of the Budget coin, serious public money is still flowing to coal and gas, especially via the Fuel Tax Credit scheme and through funding for carbon capture and storage – technology designed to extend the use-by date of climate-damaging fossil fuels," she said.

"It makes sense to fund the industries that help us solve climate change, not the industries that got us into this mess.

"Propping up fossil fuel industries with public money is bad for the climate and isn't doing anything to relieve cost of living pressures for Australians either."

Strengthening approvals processes was a key component of the Future Made in Australia package, with $96.6m over four years to fast-track approvals for renewable energy, transmission, and critical minerals projects, and deliver additional regional plans and targeted scientific studies to improve the environmental data used in decision-making.

$19.9 million was allocated over four years from 2024–25 for the Department of Climate Change, Energy, the Environment and Water to develop, agree and maintain a national priority list of renewable energy related projects and process assessments for priority projects.

Another $17.7m over three years would help reduce the backlog and support administration of complex cultural heritage applications and progress the reform of Australia's cultural heritage laws, the government said.

The Indigenous snub comes after their involvement in Australia's race to become a renewables superpower was guaranteed by a government representative at the First Nations Clean Energy Symposium in Adelaide last week.

Speaking to hundreds of delegates in Adelaide, Simon Duggan, deputy secretary of the departmental team advising Federal climate change and energy minister Chris Bowen, revealed the Albanese Government's $70b Capacity Investment Scheme - designed to meet Australia's 2030 renewable energy targets - would preference tenders with poslitive First Nations involvement.

Specific merit criteria would ensure energy proponents included quality engagement and benefit sharing with First Nations would be introduced to the federal government's new Capacity Investment Scheme tender process.

Writing exclusively for the National Indigenous Times on Thursday, Karrina Nolan, co-Chair of the First Nations Clean Energy Network, which co-hosted the Indigenous-focused, renewable energy symposium, said two significant pieces were missing from the Federal Government's 2024 Budget.

"These two pieces will shift the jigsaw puzzle into an uncertain, unsightly, unmanageable array of confusion, delay and significant expense," Ms Nolan said.

"The first is certainty - investors need certainty to invest. Financiers need certainty to lend. Project proponents need certainty to develop. Communities need certainty to consent.

"Well-designed government legislation, policy and frameworks can deliver the necessary certainty for clean energy projects to proceed."

The second element required that was not addressed on Tuesday night was First Nations people, who Ms Nolan said had been stripped from the equation.

"Focusing funding on industry subsidies and incentives and building more layers of government, the Budget falls devastatingly short in addressing the urgent and long-term energy security needs of First Nations," Ms Nolan said.

"The government knows the road to a rapid and just transition runs through First Nations land and waters."

More than 60 per cent of Australia's now super-funded, critical minerals and hydrogen projects, and the vast swathes of land needed for solar and wind to run those projects, are on land and sea where First Nations people have legal rights and interests.

"While Native Title or land rights may not apply across the whole country, cultural heritage is tenure-blind, and increasingly, investors too are demanding the certainty that genuine First Nations partnerships can bring," Ms Nolan said.

"To activate investment in Australia's superpower ambition, significant additional investment in First Nations capacity, consent, collaboration, co-design and co-ownership needs to be made through loan guarantees and tax incentives, funding criteria and specialist programs."

Most of the federal government's First Nations investments were confirmed in February, with its Closing the Gap plan a priority after an Indigenous Voice to Parliament referendum was voted down last year.

A $770m remote jobs program, and March's announcement of a $4bn remote housing program for the Northern Territory, were the major components of the Indigenous Affairs portfolio.

National Indigenous Times contacted Minister for Indigenous Australians, Linda Burney for comment.