What’s happening with Australia’s energy transition?  

Australia is set to lead the negotiations in COP31 hosted by Turkey next year and, while the country is in the spotlight, our clean energy rollout actions will speak louder than our pledges.  

Can the nation build fast and fair and set a global example as the leader of global climate negotiation? There are certainly efforts in train to do so, including $9billion in fast-tracked renewables projects in Victoria alone.  

Unfortunately, the pressure to unlock capital to meet renewable energy targets may force the government to relax safeguards, introducing integrity risks.  Without strong governance, the emerging sector risks replicating corporate capture, rent-seeking and corruption issues seen in more mature extractive industries. 

Meeting net zero by 2050 requires replacing coal-fired generators while meeting growing electricity demand. Yet, in 2024, renewable energy shares only account for 40% of total electricity generation, far from the 82% national target for 2030. Right now, Australia urgently needs large-scale capital investment to deliver a systemic clean energy rollout within a short delivery timeframe. In parallel, the government must quickly finalise designations of Renewable Energy Zones (REZ), transmission corridors, access roads, and generation sites in areas with strong solar and wind potential. This clarity is key to providing confidence to investors, developers, and the community.  However, complex regulatory processes can delay approvals, with cases of some wind farms taking more than 9 years to get approvals.  

What Australia Needs: 

• $122 billion by 2050 (AEMO est) – half of Australia’s 5 year Infrastructure Project Pipeline 

• 10,000 km of new transmission lines by 2050 (AEMO est) – almost three times straight-line distance from Perth and Brisbane 

• 42,000 electricians by 2030 (Jobs & Skills Australia) – a 32% increase on the current workforce

For Australia and other countries around the world, infrastructure is the backbone of renewable energy system. Solar panels, wind farms, energy storage, and grid infrastructure (including transmission lines) are critical to deliver renewable electricity to where it is needed. Yet, in Australia, a combination of inconsistent long-term policy, weak consultation processes, lengthy land-use approvals, and institutional and regulatory loopholes creates serious roadblocks. As a result, communities are pushing back, investors are hesitant, and developers are experiencing labor shortages.   

While the challenges to reach net zero are significant, so are the economic opportunities. The global shift away from fossil fuels creates space for new technologies, new jobs, and new sectors to grow. Not only will the Renewable Energy Infrastructure development plan help Australia’s economy, it will also create jobs for local communities.  

Why does it matter? Getting Governance Right for a Just Transition 

Australia is still building its renewable energy infrastructure (REI) ecosystem and the regulations that govern it. This presents a rare window of opportunity to get the governance right for a just transition. Today’s decisions will shape who benefits, and who bears the cost of the energy transition. As the leader of the COP31 negotiations, we have the chance to lead by example and become the model for other countries in balancing urgent energy needs with integrity in the fight against climate change. 

So what does strong governance look like?  

It looks like a system embedded with equity, accountability, and inclusion in every stage of the project lifecycle. That includes transparent licensing and contracting, robust due diligence, fair benefit-sharing agreements for landholders and Traditional Owners, early and meaningful community engagement, and most importantly, transparent public access to project data and the developer track records.  

Particular attention needs to be given to social licenses, as those secured from meaningful community engagement is key to speeding up the renewable energy transition. This is critical particularly with regards to Indigenous communities.  

But Australian communities are facing consultation fatigue due to unclear land use planning frameworks, overlapping developer proposals in unconfirmed Renewable Energy Zones, and perceived inequality in land valuation and compensation processes. This resulted in mistrust, opposition, and in some cases even project cancellations. Fortunately, good community engagement can minimize harm and maximize benefit. In the Hunter Transmission Project, for example, 85% of the project was shifted to power station, government, and mining land, reducing direct community impacts after a series of community consultations.   

Strong governance checklist: 

• Transparent project licensing and contracting 
• Strong community engagement and fair benefit-sharing agreements
• Beneficial ownership/company ownership structures and tax contribution 
• Government-approved developer rating scheme
• Anti-corruption policy and grievance mechanisms 

A strong governance process will also help Australia to speed up the energy transition by reducing opposition and integrity risks while building a sustainable renewable energy infrastructure with full support from the community. This not only aligns with climate targets but also a just transition. The renewable energy agenda must include a transparent and accountable process, which can look like adopting and adjusting standards from the existing frameworks, like the green hydrogen standard, the hydropower sustainability standard, or solar supply chain traceability protocols.  

Without a robust and inclusive design, there is a risk that the accountability framework becomes tokenistic, lacking the legitimacy and depth required to meaningfully inform community trust or procurement decisions. This lack of transparency extends to payment and compensation arrangements for landholders, particularly for those hosting transmission infrastructure in Australia. Communities often wait for years for developers to determine benefit-sharing agreements, with little clarity on value or timing. This fuels mistrust and complicates social license negotiations, especially where infrastructure delivers few direct local benefits. 

Where does TI Australia go from here?  

Leveraging the experiences in the Accountable Mining Programme, TI Australia undertakes research, engages with stakeholders and advocates for meaningful engagement with the community to support a just energy transition. We’re also working with infrastructure and construction companies to help them lift their standards of business integrity – critical at a time when the CFMEU is under intense scrutiny to explain an alleged wasted $15 billion in cost overruns on Victoria’s Big Build, money alleged to have flowed toward organised crime networks embedded in construction sites. 

The cost of getting this wrong extends well beyond union misconduct. Across Queensland, NSW and Victoria, renewable energy projects are being delayed, downsized or cancelled because communities have been informed rather than consulted, some learning of major projects through public notices long after key decisions had been made. In NSW alone, wind projects can take four to seven years to gain approval and cost developers over $4 million just to lodge a planning application.  

The contrast with projects built on genuine community mandate is stark. Victoria has already surpassed its 40% renewable energy target, reaching 44.6% in 2024. At the community level, the Hepburn Energy cooperative near Daylesford – Australia’s first community-owned wind farm – raised $10 million from over 2,000 local investors and now powers more than 2,000 homes. Its early community forum found 95% of attendees in support before a single turbine was planned. That is what good governance enables. 

The Infrastructure Corruption Risk Assessment (ICRAT), developed under TI Australia’s accountable infrastructure program, is one of the tools that can assess corruption risks in project selection for renewable energy infrastructure and support the embedding of good governance from the start. New Community Consultation Guidelines in development by the Accountable Mining Programme will further bolster frameworks for meaningful engagement.  

TI Australia will also advocate for a developer rating scheme to track performance across projects and push for clearer, more transparent processes for affected communities and First Nations peoples.  

With Australia set to lead COP31 in global climate negotiations, the moment to act is now – and the tools to do so already exist. Embedding good governance from the start does not constrain the energy transition – it unleashes it.