Proponents can benefit from the Australian Government investment decision committing to ensure First Nations participation and benefit in a range of legislative, policy, program and funding schemes in Australiaʼs clean energy transition.
Incorporating First Nations consent, partnerships, and ownership – and incentivising proponents to achieve First Nations outcomes through innovative tax and procurement rules across the supply chain – has become part of the competitive advantage that jurisdictions are seeking to establish.
Proponents wanting to secure investment must engage with Traditional Owners and heed First Nations criteria in a range of schemes, going a step beyond to secure low risk and sustainability in projects.
The government has included First Nations-specific criteria in the design of:
First Nations Clean Energy Strategy - a 5 year national framework for action that will help all governments, industry and community members work together in a coordinated approach to create opportunities for First Nations people to gain social and economic benefits by addressing access to affordable clean power, and ensuring benefit-sharing, partnerships, and First Nations-led projects. Read the Strategy
Capacity Investment Scheme (CIS) - a massive investment in renewable energy generation and capacity over four years to meet the Federal government’s 2030 renewable energy targets. Proponents in the underwriting Scheme are required to meet weighted criteria concerning First Nations engagement, community engagement and benefits sharing, and First Nations and social licence commitments, thereby reducing risk and increasing shareholder value which can be gained through First Nations partnerships and ownership of renewable energy projects. The Australian Energy Market Operator (AEMO) assesses proponents bids to the CIS against, among other things:
- consideration of the Proponent’s approach to engagement strategies and understanding of Traditional Owners and First Nations groups
- evidence of respectful and productive engagement with First Nations communities, and for First Nations communities to be afforded genuine social and economic opportunities and partnerships
- consideration of the Proponent’s commitments to First Nations outcomes. Examples include opportunities for equity and revenue sharing and energy off-take agreement models for First Nations communities.
AEMO suggests proponents should consider applying Leading Practice Principles for engaging with Australia’s First Nations peoples on renewable energy projects.
Future Made in Australia Act 2024 - establishes the National Interest Framework to support consideration and decision making around public investment that facilitates private sector investment in the national interest. It also establishes community benefit principles which aim to ensure investments deliver benefits to and grow First Nations participation and economic outcomes in Future Made in Australia initiatives. Read the Act
National Reconstruction Fund Corporation Act 2023 - establishes the National Reconstruction Fund Corporation to facilitate increased flows of finance into priority areas of the economy, highlighting the need for investments (which may include renewable energy and low-emissions products) to positively impact First Nations. Read the Act
Net Zero Economy Authority Act 2024 - the bill establishes the Net Zero Economy Authority to identify, broker, facilitate and catalyse transformational projects in priority regions. The Authority supports First Nations to participate in, and benefit from, Australia’s energy transition. Read the Act
Hydrogen Headstart - provides revenue support for large-scale renewable hydrogen projects, and ensures First Nations engagement, decision-making and benefit sharing is a key requirement for beneficiaries of hydrogen production contracts. Learn more here
Northern Australia Infrastructure Facility - is a development financier with funding providing financial assistance to infrastructure projects to drive public benefit and economic growth, and materially improve the lives of First Nations people in northern Australia. Proponents are accountable for shaping and delivering an Indigenous Engagement Strategy ‘to transform good intentions into a clear, culturally appropriate, locally contextual plan with tangible commitments’. Learn more here