The Authority is set to receive $1 billion in funding over the next decade.
The Net Zero Economy Authority bill has been approved by the lower house of Parliament in Australia with the support of the Labor government, the Australian Greens, and “Teal” independents.
The Authority will consist of a board, CEO, and staff who will collaborate to drive public and private sector investment in the transition to a net zero economy. The board members, including the chair, will be appointed by a government minister who will provide directions to the board.
In addition, the Authority will assist workers in “emissions-intensive” industries to secure new employment opportunities or enhance their job prospects.
The CEO board will also have the authority to issue a “trigger notice” and involve the Fair Work Commission to safeguard workers when a coal-fired or gas-fired power station shuts down.
Assistant Minister to the Prime Minister Patrick Gorman emphasized that the legislation will help ensure that future generations in Australia can power the nation.
“Australian workers, Australian industry, Australian communities, working together to power every part of our nation and every one of us. The way we power Australia will change. But those who do it will not,” he said.
Regional MPs Raise Concerns
Nationals MP David Gillespie expressed concerns about the law, stating that it could negatively impact the energy system in a speech to the House of Representatives on June 3.
Mr. Gillespie highlighted that Australia’s current 25 gigawatt system would be replaced with 400 to 500 gigawatts of solar and wind generation, along with significant infrastructure developments.
He argued for a balanced approach to incorporating renewables into the energy system, cautioning against over-reliance on weather-dependent generators.
Fellow Nationals MP Keith Pitt pointed out China’s substantial contribution to global climate emissions and raised concerns about the impact of government policies on regional jobs and economies.
$1 Billion For the Net Zero Authority
In the 2024 budget, the federal Labor government announced an additional $399.1 million funding for the Authority, with allocations for policy development, job creation in regions, and support for workers affected by the transition. (pdf)
This funding includes support for workers and communities impacted by net zero initiatives, an energy industry jobs plan, a public information campaign, and guidance for businesses involved in net zero activities.
Furthermore, a substantial amount has been allocated for the Authority between the 2029 and 2035 financial years, with ongoing funding of $93.4 million per year.
