A new report today from the Centre for Policy Development (CPD) proposes a framework to help government tackle growing community resistance to new green energy and industry projects, arguing communities need to be supported through the transition.
Sharing the Benefits: Ensuring new industries strengthen communities acknowledges that lengthy planning approvals, supply shortages and labour constraints have all slowed progress. But to reach net zero by 2050—and stay competitive in a global economy rapidly moving away from fossil fuels—the report argues the government must directly address growing community concerns.
Many communities feel they are being asked to shoulder the costs of the transition without having a real say or seeing any tangible benefits. And with billions in public funding on the table through schemes like Future Made in Australia, there is a clear lever the government can use: require all projects receiving support to demonstrate genuine community engagement and deliver measurable community benefits.
While some schemes already consider community benefits, Sharing the Benefits argues the Commonwealth should go further by making greater levels of funding available to projects that deliver stronger outcomes for communities.
The report outlines a practical framework for applying these principles across all public funding of green projects. To unlock higher levels of support, developers would need to demonstrate they offer secure, well-paid local jobs; apprenticeships and inclusive workforce pathways; stronger outcomes for local communities and First Peoples; and greater use of local content in supply chains. The more a project can deliver, the more support it should receive.
Centre for Policy Development CEO Andrew Hudson says government and project developers must ensure the transition supports and strengthens local and First Nations communities.
“The transition should be an opportunity for communities.
“A lot of the concerns around net zero come down to people not feeling supported. That doesn’t need to be the case.
“Communities should have a voice in decisions, see tangible benefits, and feel they are treated fairly—especially when they are vulnerable to change.”
Economic Director Toby Phillips said community benefit requirements must be meaningful.
“It should be more than a box-ticking exercise,” Phillips said. “If developers are rewarded for doing more, we’ll see a race to the top; with stronger competition, better engagement, and real improvements for communities.
“There are billions of public dollars flowing into projects for the net zero transition. We can ensure that investment builds stronger communities as well as new industries.”
The framework in Sharing the Benefits shows how stronger incentives can lift ambition, build momentum and secure the social licence needed to deliver major green projects. With the right policy settings, a swift and just transition can open Australia to emerging markets in clean energy and advanced manufacturing, revitalise regional economies, empower communities, and deliver long-term benefits for all Australians.
