“About time:” Net Zero Authority to guide just transition from fossils to renewables

One week after the permanent closure of one of Australia’s largest coal-fired power plants, federal Labor has announced the establishment of a new national body to support emissions-intensive sectors and their workforce to transition into new clean energy industries.

The Net Zero Authority, which will be legislated through parliament, honours the Albanese government’s commitment to a “just transition” as Australia shifts to an 82 per cent renewable electricity supply in less than a decade.

The new body’s functions will include working with state, territory and local governments, existing regional bodies, unions, industry, investors, First Nations groups and others to support workers – such as those from the now shuttered Liddell coal plant – to access new employment, skills and support.

For regional communities built up around fossil fuels and other transitioning sectors, the new body will coordinate programs and policies to attract new clean energy industries and set those industries up for success.

The federal government said on Friday that it will also provide additional funding from the $1.9 billion Powering the Regions Fund to support existing industry and new clean energy industries, with the creation of a $400 million Industrial Transformation Stream.

“The shift to net zero emissions by 2050 must happen fairly for Australians in emissions-intensive industries and the communities they live and work in,” says a joint statement from the PM, the Treasurer and energy minister Chris Bowen.

“The regions that have always powered Australia can power Australia into the future, but we need to seize those opportunities.

“This Authority is about leaving no-one behind as this global shift continues.”

Demolishing obstacles

Speaking from Liddell Lake, across the water from the shuttered coal plant, Bowen said he wanted the Net Zero Authority to “focus like a laser on any obstacles to job creation and investment” in the regions.

“We want it to be a one-stop shop for those thinking of coming to regions like this to create new jobs, to create investment, to create jobs for the future,” Bowen said.

“We want it to be a one-stop shop for workers who are thinking about the transformation, how they prepare for jobs for the future what changes they need to make, what retraining they want to consider, how they can best pursue these options.

“We want it to be knocking down obstacles to people having an economic future in the Hunter and regions just like it. Coming in, seeing an obstacle, whether it be an obstacle to new jobs or an obstacle to retraining, and demolishing that obstacle. That is the job of the Net Zero Authority.”

About time

The news of a new authority to guide the just transition of Australia’s energy sector has been broadly welcomed by industry, regulators and green groups as “essential,” “crucial” – but also as ‘not before time.’

The Greens, in particular, lament what they describe as a “lack of urgency” from the federal government to get behind regional workers and communities.

The Greens also raised concerns about the new authority’s potential lack of authority on such a crucial part of the energy transition.

“An agency within the prime minister’s office is not the independent statutory authority unions and experts have been calling for, and international best practice demands,” said Greens spokesperson on industry, transition and regional development, Penny Allman-Payne.

“And the government has provided no timeline for when legislation to establish a statutory body will be brought to parliament.

“Unless we manage the transition justly and democratically the regional workers and communities who have helped power our country and generate prosperity for millions will be left behind,” Allman-Payne says.

The Clean Energy Council said it was pleased to see this “vital piece of long-term planning” being put into action as part of the upcoming Federal Budget, but also noted that it was “long overdue.”

“The Clean Energy Council and its members have long advocated for a Net Zero Authority as part of a just transition,” a statement said on Friday.

“The authority will be an essential building block as part of a Renewable Energy Superpower Masterplan, which the Clean Energy Council is advocating for within next week’s budget.”

Talent in spades

Elsewhere, however, the response has been largely positive, including from groups on the ground in the so recently disrupted Hunter region of New South Wales.

“This is a great opportunity to shine a light on the potential of a renewable industrial precinct for the Hunter,” says Beyond Zero Emissions senior project manager Sam Meller.

“We’ve got some incredible businesses working on innovation and manufacturing, making products for the net zero world and I’m really happy that the government will be focusing on what we need to do to get to net zero, because the Hunter has got that talent in spades.”

Peter Coughlan, a local Hunter businessman who supports the group Hunter Renewal, says he looks forward to the national authority working closely with the Hunter Valley Authority promised by the NSW state government.

“There are many businesses in the Hunter that are already active in the renewable energy space and we should be taking all the opportunities available for the national and regional authorities to work together.”

Tim Buckley, the senior energy market analyst and director of Climate Energy Finance says a national transition authority is exactly what Australia needs to ensure the national interest is at the heart of energy and climate policy framework.

“The national transition authority will … be really important in ensuring Australia’s workforce and communities are best placed to pivot from the fossil fuel focused industries from the past to the clean energy and critical minerals and value adding opportunities of the future,” Buckley says.

“The global supply chain diversity is a critical focus and Australia needs to both protect our own energy security, but also provide an alternative source of green energy supply for our key trade partners.”

The Australian Council of Trade Unions also welcomed the news, describing it as an “important victory” for the nation’s energy workers.

“The National Net Zero Authority creates a sturdy bridge for workers, their families and communities to a clean energy future,” ACTU president Michele On’Neil says.

“Supporting creation of new quality jobs and skills and providing the resources workers and communities need are essential elements of this plan.

“We congratulate the government and urge it to move quickly in passing this historic legislation. After a decade of denial and delay under the previous government, we have no time to waste in securing a just transition.”