Transforming the Australian economy to net-zero emissions is the biggest challenge the country has faced outside of wartime. Most of the action will play out in the regions, because Australia’s industrial base (the source of much of our emissions) is largely located outside capital cities.
Australia can learn from previous shocks caused by structural changes to the economy. We know from these experiences that allowing affected communities to determine their own destinies, and supporting them in this process, gives those communities the best chance of surviving, adapting, and eventually thriving. We also know the transition process is a long one, and support must be correspondingly long.
A Net Zero Economy Authority, as proposed in the Bill currently before Parliament, could help meet these challenges. But it must be designed well to maximise its chances of success. It must allow for bottom-up changes, driven from the regions by regional communities. And it must be a long-term presence.
The current design, as outlined in the Bill, misses some opportunities.
The proposed Authority has a broad remit, reflecting the diversity of challenges facing the regions. But it needs structure and focus within this, so that it can effectively prioritise and make best use of its resources.
The proposed remit also risks creating two classes of workers: one that is eligible for assistance and another that is not. The remit should be broadened to allow future governments more flexibility to assist workers beyond the electricity sector, including those who are not concentrated in particular regions.
Finally, the Bill should be amended to secure the Authority’s budget. The Authority must be on a stable financial footing if it is to provide real help to those regions at the forefront of the energy transition.
These issues, and our specific recommendations for changes to the Bill, are outlined in the following pages. If the Parliament were to adopt our recommendations, the Authority could be a useful and practical institution that future governments could use to help make the transition to net zero a real opportunity for Australia and its regions.