The Hunter Valley has long been at the heart of Australia's industrial economy, providing energy and resources. As the world moves toward a zero-emissions future, the region's rich industrial legacy must provide a foundation for its future success.
The Climate Change Authority's (CCA) recent advice to the federal government underscores the importance of place-based strategies, an approach that is crucial for regions such as the Hunter, where high-energy industries are central to the economy.
I've worked with the inspiring people of the Hunter for many years, witnessing firsthand the commitment of local industry leaders, workers, and communities to building a better future. As CEO of Beyond Zero Emissions (BZE), an independent think tank focused on creating practical solutions for a zero-emissions economy, I can see clearly how this region can thrive in a decarbonising world.
The CCA's sectoral advice helps create a roadmap for decarbonising heavy industries. High-energy industries such as energy, steel and aluminium, have been the backbone of the local economy for decades, and are positioned to remain competitive in a changing global market.
BZE has long advocated for place-based solutions tailored to the specific strengths of regions such as the Hunter. Our Renewable Energy Industrial Precincts (REIPs) model provides the infrastructure needed to power existing heavy industries with renewable energy, creating opportunities for new industries and cleantech supply chains. For the Hunter, REIPs could unlock a future where green hydrogen, green steel, and products made from our critical minerals like batteries are produced at scale, opening new energy markets and securing long-term jobs for local workers.
The CCA report also identifies the constraints in supply chains for important cleantech, including renewable energy generation, electric mining and haulage equipment, as a critical barrier to creating demand for green technologies and unlocking private investment. By ensuring that a significant portion of renewable energy infrastructure and supply chains are sourced domestically, we can create thousands of jobs across sectors such as solar, wind, batteries, and electric vehicles.
With a skilled workforce and industrial infrastructure, the Hunter could become a hub for making and assembling the components needed to power Australia's clean energy future. BZE's research shows that capturing just 30-40 per cent of the supply chain for key technologies could generate billions of dollars in revenue and thousands of jobs.
This builds environmental sustainability and economic resilience into the future.
While the potential is huge, national coordination will be key to unlocking these opportunities. The CCA highlights the importance of timing and sequencing in building the infrastructure necessary for a smooth transition. Without coordinated investment in clean industry infrastructure, regions such as the Hunter could miss out on the economic benefits of the shift to clean energy.
We need a clear, strategic approach to ensure that we're making the right investments in the right places at the right time.
BZE's research shows that by 2050, Australia could triple its export revenue from fossil fuels by transitioning to renewable commodities like green hydrogen and steel. With the right policies, investments, and strategic planning, this region can lead the way in Australia's transition to a zero-emissions economy.
To guarantee success, the whole community must benefit. The CCA's advice includes a framework for community benefit-sharing, which is crucial for regions impacted by the shift away from fossil fuels. This means long-term investments in local infrastructure, health, education, and community services-ensuring that the benefits of the clean energy transition are felt across the Hunter.
I'll be in Newcastle soon to hear your ideas and discuss these issues in more detail, including through a public lecture as part of the "Looking Ahead" series at the University of Newcastle on Thursday, September 19.
I encourage you to come along, and contribute to the conversation about how we can work together to make this vision a reality.
