A new report released today by the Regional Australia Institute (RAI) shows Australia’s net zero targets are under threat, unless regional communities are given a genuine seat at the table to help drive the transition.
RAI CEO Liz Ritchie said the Towards Net Zero - Empowering Regional Communities report has found without strategic coordination and collaboration between the three major players - industry, government and regional communities - this once-in-a-lifetime opportunity to strengthen and rebalance the nation will be lost.
“A juggernaut of energy proponents is already working in regions, and many local communities are behind because they don’t have the information they need. Industry is moving faster than government in this space,” Ms Ritchie said.
The RAI is calling on governments to pick up the pace with information flow, planning and service provision for regions, industry to invest long-term and for regional communities to become prominent and active partners.
“We cannot simply aim to reach net zero at any cost. It must be done in a way that is just and provides local opportunities, in an efficient manner, with an equity of outcomes for all Australians – and the clock is ticking,” Ms Ritchie said.
Australia currently ranks seventh (out of 40) on the Renewable Energy Country Attractiveness Index, but despite 2022 being a record year for renewable energy investment, is facing an uphill climb to reach its 2030 target of 82% renewable generation.
The report found that community leaders need proponents of large-scale renewable projects to invest in key liveability measures locally such as housing, workforce, education, childcare and connectivity to build a lasting legacy for their residents.
“Thousands of jobs will be created over the next six years to 2030, and regions require more houses, childcare facilities, skills and training, and service provision workers such as doctors and nurses to support this societal transformation,” said Ms Ritchie.
“Australia’s transition to a net zero economy by 2050 rests on the strength of the regions, where renewable energy and transmission projects are and will be built. Regional Australia’s success will be Australia’s success and vice versa.
“To ensure Australia has a fighting chance to achieve the targets laid out in the Federal Government’s Climate Change Act (2022), detailing Australia’s plan to transition to net zero, we need everything to go right. Regional communities need to be an active and prominent partner.
“The United Nations has described the transition as ‘one of the greatest challenges humankind has faced.’ This transformation is not easy but it is happening, and it will change the environment, it will change the economy and it will change society.
“The Australian Energy Market Operator estimates a capital cost with a present value of $122 billion to build the new utility-scale generation, storage and transmission needed to maintain an affordable and reliable supply of electricity as coal generation retires. This provides a unique opportunity that will not only deliver an economic injection into regional Australia, but also highly-skilled jobs and a source of funds for liveability projects that have the power to better the regions.
“The transition presents a once-in-a-generation chance to deliver a legacy for the regions, and it must not be squandered.”
Towards Net Zero: Empowering Regional Communities is the third instalment in the RAI’s ongoing research into Australia’s decarbonisation goals. This report makes eight recommendations including:
- For government to establish a Regional Prosperity Collective to match public and private investment commitments with place-based community needs.
- The development of a Local Legacy Fund to deliver material economic benefits for communities.
- A stronger role in local net zero transition strategic planning for regional leadership bodies with local knowledge such as the Regional Australia Development networks, Joint Councils and Regional Commissions.
- The development of an Energy Transition Hub, which would provide regional communities with practical advice and clear information through a website or phone hotline.
- A higher local government rate base for large-scale renewable projects to better reflect usage of council services, infrastructure and amenity and to support a just transition.
The RAI consulted with six regional communities - the Upper Spencer Gulf (South Australia), Mid West (Western Australia), Banana Shire (Queensland), Central West (New South Wales), Wellington Shire (Victoria) and Wimmera Southern Mallee (Victoria).
“Overall, regional communities saw the transition as an opportunity to build a legacy for future generations. Businesses want to ‘grow their own’ workforce and community leaders want to see real engagement in renewable projects,” Ms Ritchie said.
“While there’s general goodwill towards the transition, there is also frustration regarding current consultation. Regional stakeholders are also calling for practical and clear information. Community acceptance and participation will also have a significant impact on the cost, timing and success of transition activities.
“The regions are now home to nearly 10 million people, but they continue to be held back by a lack of housing, childcare and access to critical services. Through strategic leadership and harnessing the economic stimulus decarbonisation will provide, many of these issues could start to be addressed.
“Australia’s transition to net zero can be the catalyst for enormous, beneficial change if governments, industry, regions work together. This transformation may be focused on energy, but it’s also about empowering regions to thrive.”
The RAI’s Regions Rising National Summit: The New Frontier will be held at the National Convention Centre Canberra (NCCC) between 14-15 August. Full program here.
Media are invited to attend. A livestream link for the National Summit is available upon request.
The Towards Net Zero: Empowering Regional Communities report was funded by the Australian Government, in conjunction with the NSW, Queensland, South Australian and Western Australian Governments.
Regional Australia Institute
Melinda Hayter
Ph: 0498 373 300
E: [email protected]