Business associations and labour unions have supported the establishment of a net zero authority by the Albanese administration to cover the economic gap created by closure of fossil fuel mines as well as power plants.
The establishment of the authority to support “the orderly and positive economic transformation” brought on by the abandonment of carbon-emitting businesses was confirmed by the government on Friday.
In the beginning, it will establish a body that will begin operations by July 1 and advise the government on the ultimate layout of a national net zero authority which will be enacted into law.
The energy minister, Chris Bowen, stated from Lake Liddell, close to Muswellbrook in the Hunter area of New South Wales: “We want this authority to focus like a laser on any barriers to job creation and investment. It should be a one-stop shop for anyone considering moving to a place like this in order to invest, create new jobs, or secure future employment.
According to Bowen, the new authority will spend $23 million in its first year. The Australian Renewable Energy Agency will be in charge of administering the $400 million from the Powering the Regions Fund. Decarbonization requires investment, he added, but it is absolutely necessary.
In order to prepare for decarbonization, industries in the La Trobe Valley in Victoria, Lithgow, and the Hunter Valley which is in New South Wales, that are home to coal mines and power plants, have been pushing for coordinated assistance.
The ACTU reaffirmed its proposal for a national energy transition organization in March, and this week there were hints that the upcoming federal budget will include funding for one.
Penny Sharpe, the energy minister for NSW, and other energy ministers, according to Bowen, were briefed. The federal body would support the transitional entity established by NSW.
Once enacted into law, the authority would help people retrain for new jobs, coordinate initiatives across agencies, and promote investment in low-carbon businesses to create new jobs.
According to the national secretary of the union, Steve Murphy, “[Australian Manufacturing Workers’ Union] members have been fighting for a national just transition authority for years.”
The transition to renewable energy is taking place, but if the private sector is allowed to handle it, workers will be left behind, their communities will suffer, and thousands of excellent jobs will disappear.
“Everyone is now on the same page across the board; we all understand that can’t happen,”
The authority’s establishment, according to the Business Council’s chief executive Jennifer Westacott, is “a crucial step toward a managed transition that brings communities on this journey.”
Australia’s transformation has been delayed in part because people have lost faith in our capacity to effectuate such a significant change, according to Westacott. “This is a chance for better jobs and higher living standards, and this agency will help fix that to some extent.”
The action was praised by the Australian Council of Superannuation Investors as well.
According to Louise Davidson, CEO of ACSI, “the shift to a low carbon economy is the most important transformation of our economy since the Industrial Revolution.”
International examples show how a lack of coordination results in negative outcomes for the impacted communities, workers, and the economy as a whole.
He added that the government intended to pass legislation establishing the authority “over the course of the next 12 months.” “The cabinet will be considering appointments in the coming weeks, and we’ll make further announcements after that,” he said.
