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Investing in, incentivising and including First Nations consent, partnerships and participation in the energy transition is an investment decision

The First Nations Clean Energy Network has been busy representing our Members aspirations by responding to a number of government enquiries over the last few months.

Since being launched in November 2021, the Network has advocated for a system that ensures First Nations participation and benefit in Australiaʼs transition to clean energy, including Free, Prior and Informed Consent and co-ownership outcomes.

Integrating and embedding these sorts of arrangements into policy and regulatory schemes has the potential to be transformative and mutually beneficial.

The Network has, for example, advocated strongly for the inclusion of First Nations-specific criteria in the design of the Capacity Investment Scheme.

Ensuring First Nations communities and Traditional Owners can participate in and benefit from Future Made in Australia supports in the Future Made in Australia Bill was also key in our submission to the Senate Economics Legislation Committee.

Establishing incentives through industrial policy - like production tax credits - (and like the auction process in the Capacity Investment Scheme) provides another opportunity to consider and design and deliver mutually beneficial outcomes for proponents and First Nations communities by incentivising First Nations partnerships and genuine First Nations participation in projects - thereby providing opportunities to decrease risk for proponents and add significant shareholder value.

Similarly, we think the government’s Future Made in Australia (Guarantee of Origin) Bill 2024 is an opportunity to ensure First Nations outcomes are part of certification schemes. Our recent submission suggests that it would be entirely appropriate and essential for the Guarantee of Origin scheme to incorporate First Nations outcomes in the attributes it tracks associated with low-emission products and the certification mechanism it establishes for renewable electricity.

And in our recent submission to Treasury on its proposed Front Door we recommended that only projects that will demonstrably deliver First Nations outcomes (based on the self-determined priorities and aspirations of affected First Nations communities), or which are First Nations-owned and led, should be assessed as ‘transformational’ projects and assigned priority status. 

We recommended the Front Door should ensure that First Nations communities are also properly equipped and resourced to navigate the impacts, benefits and risks of major and/or transformational projects.

And, that the Front Door could play a role in ensuring that each of the Government’s Special Investment Vehicles adopts a best practice, consistent, approach to First Nations engagement, including ensuring Free, Prior and Informed Consent and positive First Nations impact.

In securing Australia’s place as the world transitions to clean energy, Australia must realise that investing in, incentivising and including First Nations consent, partnerships and participation in the energy transition and in industrial policy is an investment decision that will support Australia to remain globally competitive.