SYDNEY, Jan 20 (Reuters) - 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

and Alcoa ( AA ).

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.

($1 = 1.6134 Australian dollars)