Setting up industrial regions for net zero

Australia

In the last year there has been an incredible shift with strong tailwinds building behind achieving net zero emissions. Net zero targets are now set across states and at a national level and industry is seeing the opportunities of the decarbonised global economy on the horizon.

In 2022, industry is taking real steps forward on the development and deployment of emissions reduction technologies and investing in projects to decarbonise operations in the regions they operate in. This investment in our future is only accelerating as momentum towards decarbonisation builds.

It is no longer an option to wait and see what happens next – action is urgently needed now or we risk falling behind other nations. Planning and implementing changes in operations, strategy, regulatory environment and financing are underway now to ensure emissions are reduced in line with limiting warming below dangerous levels and to capture early-mover advantages in the transition to a global green economy.

The role of industry in decarbonisation cannot be underestimated. Industry’s early uptake and effective integration of renewable electricity, electrification and clean hydrogen will shape our future energy systems and enable access to future markets, giving Australia a very strong chance of realising the positive outcomes that will flow from the decarbonisation transformation.

There is no doubt that the changes needed will be tough and there will be significant short-term challenges to navigate in the decarbonisation of existing operations and associated infrastructure. With our ‘can-do’ Australian spirit, we can remain competitive in a decarbonising global economy. Australian companies and governments can lead together to invest in and transform the energy system, infrastructure and markets to capture and hold an early mover advantage.

Our spirit is not our only advantage. Australia has the natural resources, workforce and ability to expand infrastructure to support the development of new decarbonised industries, including in the existing industrial regions covered in this report: the Pilbara, Kwinana, Hunter and Illawarra. Where these opportunities can be realised, there are clear benefits for long term employment within these regions as well as for the nation as a whole. The scale, pace and importance of decarbonisation in hard to abate sectors in key regions is clear and with industry leading the way, we have the opportunity of a generation to bring together our efforts as a nation and work together to support the momentum already underway for the benefit of our regions, the nation’s economy and all Australians.