Towards Net Zero: Building a Legacy

Overview

Australia’s renewable energy transition is accelerating, with regional communities at the forefront of hosting the infrastructure needed to meet net zero targets. As renewable sources now supply nearly 40% of the nation’s electricity, some regions are already deeply engaged in this transformation, while others are just beginning. This shift presents a historic opportunity to invest in regional Australia, building sustainable communities and lasting legacies through thoughtful development.

However, the rapid pace and scale of change are creating challenges that threaten progress. Communities are voicing concerns about the social, cultural, environmental, and economic impacts of large-scale renewable projects. Strains on housing, services, and employment, coupled with fragmented engagement and complex regulations, are eroding trust and social licence. Without strong community support, projects risk delays, increased costs, and diminished investment, jeopardizing Australia’s net zero ambitions.

This report, Towards Net Zero: Building a Legacy, offers a roadmap to overcome these challenges and unlock long-term regional benefits. It showcases leading practices from across the country and introduces the Regional Energy and Legacy Deal (REAL Deal); a national framework for coordinated planning and investment. By empowering communities through place-based decision-making and co-investment, the REAL Deal aims to turn the energy transition into a win-win for regions and the nation. This is a must-read for policymakers, industry leaders, and community advocates shaping Australia’s energy future.

Key Findings

Building national, state & local narratives
Building a strong narrative is important to create social licence for the energy transition and renewable energy development in regional Australia. Consultations heard that a lack of information and a compelling rationale for the transition remains a key issue for regional communities. Recent surveys show that communities have low levels of awareness about the energy transition and the role of different types of infrastructure within the transition. Governments and industry have a key role to play in building compelling narratives to support the energy transition and renewable energy development in regional communities.

Policy & regulation
Clear policy and regulatory frameworks contribute to social licence. State-wide energy roadmaps and designated renewable energy development zones provide a valuable framework for planning and regulating development and provide clear standards for developers to consider community impacts and interests. Leading practice regulatory frameworks are emerging nationwide, notably South Australia’s Hydrogen and Renewable Energy Act 2024 and New South Wales’s comprehensive suite of policies for the delivery of Renewable Energy Zones.

Community engagement
Transparent, accountable and participatory community engagement is essential to build social licence for renewable energy projects. Community engagement needs to recognise and acknowledge local experiences, from First Nations to farmers to coal transition communities. The RAI consultations heard that communities are dissatisfied with the quality of community engagement in their regions. Participants reported that governments and industry have insufficient presence in communities, communities are overwhelmed by the volume of consultation, and misinformation is rife. There is substantial evidence that genuine engagement that meets the needs of communities can mitigate community concern and reduce the time and cost of the transition in the long run.

Just transition
The concept of just transition provides a framework to ensure that the energy transition is structured, fair and equitable, addressing potential social, economic and environmental impacts in the regional communities that are hosting renewable energy infrastructure. Procedural and distributive justice are key factors in building social licence.

Communities leading the way
Many regional communities are taking a leadership role in planning for renewable energy development in their regions. The report highlights leading practice examples of regional communities developing strategic plans, creating partnership principles, identifying and prioritising local needs and proactively building the foundations for long-term benefits in their regions. The report finds that communities need resources and support to prepare effectively for renewable energy development in their regions. Community education and capacity building, along with funding for local strategic planning, are important to optimise benefits for communities.

Delivering lasting benefits
Communities want to be involved in decision-making about funding and benefits in their communities. Potential benefits include business development, jobs and skills training, upgrades to physical and social infrastructure, and community investment. These outcomes can only be realised through regional coordination and planning. Pooling developer contributions into regional benefits funds is a key opportunity of the energy transition.

Policy Recommendations

Recommendation 1: Implement regional investment programs to build a long-term legacy from renewable energy development: the RAI’s REAL Deal.
The renewable energy transition is a once-in-a-generation opportunity to deliver long-term investment in regional communities. Governments, industry and communities should consider regional investment programs that deliver long-term benefits to the regions. The Australian Government should develop a national framework for regional legacy-building with reference to the RAI’s proposed Regional Energy and Legacy Deal (REAL Deal).

Recommendation 2: Government transition management plans should incorporate international frameworks for just transition.
Australia’s transition to a renewables-based energy will have a significant impact in many regional areas. Australia should continue to draw on international just transition models to inform transition management and planning. This will help to ensure that the energy transition is structured, fair and equitable, addressing potential social and economic impacts on communities hosting large-scale renewable infrastructure.

Recommendation 3: State and federal governments should resource regional communities to participate as partners in the energy transition.
State and federal governments must resource regional communities to participate as equal partners in the transition. Governments should fund delivery of education and capacity-building programs for landholders, councils, community members and government agencies in regions facing significant renewable energy development. Communities need to be resourced to undertake cyclical strategic planning to identify local needs, priorities and principles for partnership.

Recommendation 4: Timely, inclusive and appropriate community engagement should be mandated through policy, regulation and funding schemes.
Governments and coordinating agencies should ensure that requirements for timely, inclusive and appropriate community engagement are mandated in policy, guidelines and funding schemes.

Recommendation 5: State and federal governments should continue to strengthen policy and regulatory structures for renewable energy development.
Confidence in regulatory frameworks is a key contributor to social licence. State and federal governments should continue to strengthen policy that concentrates renewable energy development in suitable geographic locations and standardise processes for planning and implementation.

Recommendation 6: Build a cohesive narrative for the transition through public information at national, state and local levels.
Governments have a key leadership role to play in building a cohesive public narrative that promotes the rationale for the renewable energy transition. Consistent and coherent national, state and local public information campaigns are needed to communicate the practical, economic and environmental reasons for the energy transition and for renewable energy development in regional communities. Information materials should provide transparent and accessible information about benefits and impacts to specific regions.

Acknowledgment of Funding

The research presented in this report was funded by the RAI’s Intergovernmental Shared Inquiry Program. The program delivers an annual public interest research agenda focusing on topics of strategic importance to regional Australia through a partnership with federal, state and territory governments.  

The RAI acknowledges our funding partners: Australian Government Department of Infrastructure, Transport, Regional Development, Communications, Sports and the Arts; New South Wales Government Department of Primary Industries and Regional Development; Queensland Government Department of Natural Resources, Mines, Manufacturing, Regional and Rural Development; South Australian Government Department of Primary Industries and Regions; Victorian Government Department of Jobs, Skills, Industries and Regions; and Western Australian Government Department of Primary Industries and Regional Development.

The views expressed in this report are those of the Regional Australia Institute and are not necessarily those of the Australian Government or the Department.