Local governments in regions affected by the transition away from fossil fuels need to develop plans to resiliently adapt their economies to a zero emissions future, new research has found.
Making Our Way, a report from the Centre for Policy Development, analysed the adaptive capacity of 11 local government associations across Australia at the coalface of the energy transition, which is defined as “the ability of a region to prosper through a long-term decline in its legacy industrial base”. It recommends a coordinated approach between LGA authorities, state and federal governments to ensure local economies can be diversified away from fossil fuels and into new industries, and public services and social capital can be retained to prevent people emigrating from the regions as fossil fuel industrial facilities begin to shutter.
LGAs surveyed in the report were Isaac, Central Highlands and Banana Shire (QLD), Singleton, Narrabri, Muswellbrook and Mid-Western Regional (NSW), Karratha, Ashburton and Collie (WA), and Latrobe (Vic). All are heavily exposed to the coal mining and power generation industries.
The analytical framework included consideration of economic diversity, geographic connectedness, financial capital, workforce skills, social capital and access to public services. Regions such as Collie, Latrobe, Singleton and Muswellbrook were relatively integrated with capital cities, which would help provide new economic opportunity and infrastructure to replace fossil fuel industries.
The research calls for local governments to play a leading role in the transition of their regions by creating regional roadmaps, increasing collaboration between various levels of government and industry, as well as educational institutions.
“Local-level organisations are most likely to be knowledgeable of the economic and social challenges facing their communities, to be able to identify a region’s competitive advantages and the range of industries that may be able to develop, and to understand the unexpected impacts that result from policy measures” the report stated.
The report acknowledged the new Net Zero Authority but cautioned that it had to date been mostly focused on transitioning fossil fuel dependent regional economies to opportunities in the clean energy sector, but this could not represent the whole solution because it would mean the local economy is still dependent on one economic sector, which would not be able to provide as many new jobs as would be required.
Transition plans should “aim to strengthen overall economic resilience and adaptability, rather than focusing on new anchor industries,” the report stated.