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International Approaches in Place-Based Skills Development

Future Made in Australia and Net Zero Economy Authority

Transitioning Carbon-Intensive Communities and Charting a Place-Based Low-Carbon Course

Jim Stanford
by Jim Stanford December 1, 2025

Location Australia

Initiative Net Zero Economy Authority (NZEA) and Future Made in Australia (FMiA) Program

Program snapshot NZEA is a new arms-length agency that is run by an independent board with legislated powers to identify regions where energy transitions will create employment disruptions and develop transition plans engaging affected firms, both those shedding jobs and alternative employers adding jobs. NZEA is initially targeting six regions in five Australian states facing energy and industrial transitions, potentially involving tens of thousands of affected workers. The initial goal is to facilitate a faster and smoother phase-out of fossil-fuel-fired electricity generation and related activities. The goal is to ensure that workers can transition from fossil-fuel-based activities to sustainable industries without dislocation or involuntary layoffs, while preserving the economic viability of regional communities. Over time, this approach may be expanded to other high-emission sectors. The agency is supported by a complementary suite of industrial policy programs under the FMiA with financial and regulatory resources to foster the growth of alternative employers in the affected regions. The FMiA, in turn, integrates actions by several federal government departments, co-ordinated through the Department of the Prime Minister and Cabinet. The activities of the NZEA and FMiA are complemented by an array of training and industrial policy initiatives, many involving partnership with state governments.

Sector focus NZEA planning powers are targeted at the phase-out of fossil-fuel-fired electricity generation facilities, primarily coal and some natural gas, and closely associated suppliers, including coal mines. Regional transition plans will engage alternative employers in existing or emerging renewable energy, manufacturing, technology or transportation sectors.

 

Time frame Legislation to establish the NZEA was passed in 2024 and the authority was established the same year. Legislation enabling various FMiA interventions was also passed in 2024. Both programs will run indefinitely.

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