Financing Australia’s transition to net zero

Australia has released its Nationally Determined Contribution (NDC) Investment Blueprint: a guide designed to attract and direct funds towards the projects, industries and regions that will help deliver our net zero goals. 

Developed by the Department of Climate Change, Energy, the Environment and Water (DCCEEW), the NDC Investment Blueprint highlights investment opportunities in the net zero transition, including jobs growth and supply-chains. 

The Blueprint outlines Australia’s strengths as a stable and attractive investment destination, with abundant resources and skilled workforces. It recognises that private capital will finance most of the transition to net zero, with public finance needed to start projects and close any early gaps.  

Government agencies, such as the Australian Renewable Energy Agency (ARENA), may co-fund demonstration projects to reduce risks and provide some certainty to private investors. 

The recent announcement of $45 million in funding from ARENA to the Pilbara Solar Innovation Hub demonstrates the types of projects that are co-funded to reduce risk. The Fortescue-led Pilbara Hub will operate as a large-scale test site for new solar technologies and will trial multiple innovations, including prefabricated solar and next-generation construction techniques. 

The Pilbara Hub will help investors see the potential of these innovative technologies and reduce risk for future investments, making future projects more enticing for private backers. 

The Pilbara is one of the Net Zero Economy Authority’s regions of focus, with our teams working with state government and private investors to drive new economic opportunities into the region. 

Decarbonising the Pilbara, particularly its heavy industry of processing and extraction, will be key to meeting Australia’s net zero goals.  

For the Pilbara – and regions that have historically relied on fossil fuel industries – pilot projects funded by both public and private capital, paired with the guidance of the Investment Blueprint, help create investment opportunities, resulting in new jobs and economic stability.  

Projects like the Pilbara Hub are key to moving forward in the transition, as investors are further enticed when they see successful projects they may be able to repeat across the country. 

Read about our work in the Pilbara: Pilbara, WA

Read about the NDC Investment Blueprint: Nationally Determined Contribution (NDC) Investment Blueprint - DCCEEW