Federal Climate Change and Energy Minister Chris Bowen will announce the establishment of a Net Zero Authority in Muswellbrook on Friday.
The Hunter's unions, business and environment groups have identified the need for such an authority as critical for the region's economic, social and environmental evolution over the next two decades.
Regional transition authorities have played a pivotal role in rebuilding communities impacted by the closure of fossil fuel-based industries in Victoria's LaTrobe Valley and in Collie in Western Australia over the past decade.
The announcement, to be made at Lake Liddell Recreation area, will be Mr Bowen's second visit to the region in the past week. He thanked workers at Liddell Power Station last Wednesday two days prior to the plant's closure.
The new, legislated Net Zero Authority will have powers to support workers in emissions-intensive sectors to access new employment, skills and support as the net zero transformation continues.
It will coordinate programs and policies across government to support regions and communities to attract and take advantage of new clean energy industries and set those industries up for success.
It will also help investors and companies to engage with net zero transformation opportunities.
The government intends to establish an Agency from July 1 this year, initially housed in the Department of Prime Minister and Cabinet.
The agency will also lead on providing advice to the government on the final design and establishment of the legislated National Net Zero Authority.
The authority will work with state, territory and local governments, existing regional bodies, unions, industry, investors, First Nations groups and others to help key regions, industries, employers and others proactively manage the transformation to a clean energy economy.
The government will also provide additional funding from the $1.9 billion Powering the Regions Fund to support existing industry - such as rail and aviation - and new clean energy industries, with the creation of a $400 million Industrial Transformation Stream.
Over 150 countries have now committed to net zero by 2050, including almost all major economies and the majority of Australia's trading partners. With renewable energy the cheapest form of new energy, investor interest in Australian industries is following these trends.
Hunter Community Environment Centre coordinator Johanna Lynch said the authority would play a vital role in helping the Hunter meet the challenges associated with energy transition.
"The Net-Zero Authority will allow the Hunter region to get on with the pressing task of decarbonisation in a dignified way now that a legislated commitment and investment has been made to support the families most exposed to the challenges of diversification," she said.
"We would like to draw the Ministers attention to the huge potential for jobs and regional investment in skills and sectors which will give the Hunter community an opportunity to clean up and restore the land and waterways which have borne the brunt of the mining and energy sectors pollution impacts for so long."
NSW Labor committed during the recent election campaign to the establishment of Hunter clean energy transition authority.
About 100 Eraring Power Station workers rallied in support of a transition authority last week.
The event, organised by the AMWU, focused on the role that an authority would play to ensure coal industry contractors were supported to find new employment and retraining opportunities following the closure of mines and power stations.
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