Australia’s energy transition offers an opportunity for cooperation and mutual financial benefit for investors and First Nations groups.

First Nations people, communities and groups are increasingly looking to co-design, lead and partner or own renewable energy systems. 

It is estimated that 43% of all clean energy infrastructure required to get Australia to net zero emissions by 2060 will be sited in regional and remote areas where First Nations groups and communities have rights, interests and aspirations.

Even outside these areas, First Nations groups are rights-holders and represent an integral stakeholder in Australia’s clean energy transition and have the potential to play a significant role in clean energy projects. 

International case studies and interviews with project developers and First Nations groups in Australia who have partnered on projects indicate that in addition to creating fairer energy systems, there are quantitative benefits of increased First Nations participation and inclusion across the clean energy project life-cycle.

The five significant benefits identified by this research and consultation include: 

1. Quicker project development cycle: First Nations support for clean energy projects can decrease the time taken for projects to progress through the development cycle. The development cycle is accelerated because of broader community support and prioritisation by council and planning authorities. Planning prioritisation can occur because the project has a broader community benefit and is aligned with government policy to support First Nations groups.
2. Greater access to, and potentially lower cost of, capital: Two reasons were identified for the lowering of capital costs. First, socially responsible projects, and projects that provide a demonstrable social benefit, attract broader pools of capital. Capital providers indicated that they would prioritise projects delivering broader benefit to First Nations groups over projects that simply met basic legal and planning requirements. Second, First Nations participation can result in a decreased risk profile due to the faster access to land and other components of the development cycle, resulting in greater likelihood of obtaining capital.
3. Access to, and preference amongst, offtake parties: The markets for offtake are highly competitive. Offtakers’ energy supply tenders often include First Nations involvement as a requirement or preference for clean energy projects from which energy will be purchased. Projects with greater levels of First Nations participation are more highly regarded by offtakers. 
4. Secondary market premium valuation: As a result of the benefits identified above, clean energy projects with significant First Nations participation are of higher value in the secondary market.
5. Local workforce benefits: For projects in regional and remote locations, partnering with local First Nations groups provides the opportunity for a relationship with a local workforce. These projects have the ability to optimise construction, operation and management costs by employing a local workforce and engaging with local First Nations-owned businesses. In addition to reducing costs in the construction and operation stages, local employment elevates the profile of projects, increasing attractiveness and potential for support from government programs and schemes.

Despite these benefits, investor backing of First Nations participation and inclusion in clean energy projects is currently low. For example, there are currently no operational clean energy projects in Australia with First Nations equity participation. 

Investors in clean energy projects in Australia are currently missing out on the additional value and broader economic benefits that partnering with First Nations groups can bring.

By harnessing the cultural knowledge, experience and political impact of First Nations groups, and incentivising success of the project, First Nations participation and partnership can assist project developers to realise these benefits.

Download the report

The Indigenous Land and Sea Corporation have published a comprehensive guide to assist First Nations understand, participate, and lead in the renewables and clean energy sector.

Energy security, disconnections, and community engagement on energy project development were the number one themes at the Network's inaugural First Nations Clean Energy Gathering in South Australia.

Australia now has 18 and counting First Nations clean energy equity partnerships with developers.

Significant renewable energy resources will be needed to power Australia’s energy transition, all of which need consent from Traditional Owners.

Collaboration and equitable partnerships with First Nations are critical to ensuring a clean energy transition which is just and prioritises community benefits. Access to finance, capacity building and an enabling policy environment will be key to making this a reality.

It is estimated that 43% of all clean energy infrastructure required to get Australia to net zero emissions will be sited on land under the care or control of First Nations.

First Nations communities will be significantly impacted by, and critical to, decarbonisation. The Indigenous Estate should be accessed by agreement with First Nations communities.

First Nations ownership and equity models are essential, alongside genuine partnerships that have deep levels of trust, reconciliation efforts, and a sense of community. Benefit-sharing must start early (before impacts are felt), to build and sustain trust, and maintain momentum.

Best practice frameworks for clean energy projects such as, First Nations Better Practice Community Engagement and the First Nations Clean Energy Network, should be used across all projects impacting the Indigenous Estate. Factors including a commitment to cultural heritage and land stewardship, protecting Country, sharing economic and social benefits through strategic partnerships, and ensuring cultural competency.

This Mobilisation Report was put together by Net Zero Australia, in partnership with The University of Melbourne, The University of Queensland, Princeton University and NOUS, and was published in July 2023.

Read the report here

Governments in the United States and Canada have already realised that establishing the right partnerships with First Nations in the clean energy transition is an investment decision.