Enabling the resources sector’s transition to net zero requires more than emissions reduction. A successful transition will stimulate positive system‑wide change.
Workers, financial systems, First Nations partnerships, innovation, and regional resilience, are all integral to the transition. This level of industrial transformation needs inclusive, coordinated, and future‑focused action. These considerations shape the conditions for success and ensure the transition is not only technically feasible, but socially and economically sustainable.
Enabling social licence and community benefits
First Nations people and communities
Building and promoting First Nations partnerships is critical to the resources sector’s ability to attract the renewable and carbon abatement investment necessary to build the pipeline of projects required to meet net zero by 2050. International demand for critical minerals is expected to increase significantly. Meeting this demand is likely to require access to land subject to Native Title claims or determinations, which calls for respectful engagement and partnership with First Nations communities (DCCEEW 2024c).
All levels of governments are working with First Nations Peoples, communities, organisations and businesses to implement the 2020 National Agreement on Closing the Gap at the national, state and territory, and local levels. This approach acknowledges that First Nations Peoples should determine, drive and own the desired outcomes, alongside government.
A recent study highlights that 57.8% of critical minerals projects that produce 14 key commodities are in areas where First Nations peoples hold negotiation rights (Burton et al. 2024). When Native Title claims are considered, this figure rises to 79.2%, underscoring the importance of early, inclusive and respectful engagement with First Nations communities for a thriving resources sector, and for a successful and equitable net zero transition.
Communities and the transition
Remote and regional communities are uniquely positioned to benefit from Australia’s net zero transition, with opportunities to attract investment and diversify local economies. However, realising this potential requires addressing infrastructure gaps, workforce challenges, and social disadvantage.
As the economy decarbonises and transitions away from coal as an energy source, there will be an impact on regional communities. The Net Zero Economy Authority (NZEA) is promoting an orderly and positive economic transformation in Collie (Western Australia), the Hunter Valley (New South Wales), La Trobe (Victoria), Central Queensland and Upper Spencer Gulf (South Australia).
The Australian Government through the Net Zero Economy Authority can help build economic resilience by supporting enabling infrastructure, fostering inclusive workforce participation, and encouraging stronger engagement between industry and communities. National policy settings and market signals must reflect regional needs to ensure these areas share in the long‑term prosperity of the transition. The aim is to ensure the transition works to the benefit of communities that have enabled Australia’s high standard of living and reliable power supply for many decades.
More broadly, by signalling a commitment to climate action, the government encourages investment in clean energy and low‑carbon technologies to create a positive economic transformation in regional areas, where workers and communities, including First Nations people, can realise and share the benefits of the future net zero economy.
Supporting workers, communities and families through regional workforce transition plans will help to ensure an inclusive and fair transformation, critical for a successful net zero transition.
Workforce, skills and jobs
Decarbonisation will provide employment opportunities, supported by reskilling or upskilling of existing workers to transition into the renewable energy industry. The expansion of a clean energy workforce is integral towards net zero by 2050.
Addressing skills gaps requires a coordinated effort from governments, educational institutions, industry associations and employers to develop comprehensive and accessible education and training programs.
The Australian Government is committed to tackling skills shortages by funding the training system Australia needs, with TAFE at the heart of the system. Universities have a significant role to play, not only in providing graduates but in undertaking the research and development essential for Australia to realise its net zero targets. To achieve decarbonisation through increased energy optimisation and efficiency, it is important to recognise that these are fundamentally productivity challenges.
Increasing the participation of women in the workforce should be advanced as part of a gender responsive approach (KPMG 2018). Women currently make up just 22% of the mining workforce, are overrepresented in lower paid occupations, and the gender pay gap currently sits at 16.6% (WGEA 2024).
The resources sector will need to support the equitable participation of women and other underrepresented groups to secure the skilled workforce that’s needed for net zero, in alignment with the government’s ambitions in Working for Women: A Strategy for Gender Equality, to make industries less gender segregated. Greater participation of women across occupations in the resources sector will also support industry scale up to meet supply chain demand and benefit from the increased innovation and productivity that a more gender equal workforce can bring (PM&C 2024).
Unlocking more value out of existing resources
The circular economy presents an opportunity to harness the full value of our resources. Circular practices within the sector will play an essential role in lowering energy demand and associated emissions, by improving resource efficiency. This refers to how efficiently materials are used at all stages of the mining lifecycle.
Australia's mining sector has an ongoing history of repurposing mining byproducts and waste, with initiatives such as Geoscience Australia’s Atlas of Mine Waste helping to identify opportunities to recover critical minerals and reduce environmental impacts (GA 2025).
Utilising mining byproducts and waste, such as tailings, provides an opportunity to alleviate pressures associated with the extraction of virgin materials and reduce Australia’s carbon footprint. Moving towards a circular economy is critical from both supply security and environmental perspectives and provides the basis for a sustainable and competitive economy.
Australia’s Circular Economy Framework provides the policy blueprint for driving Australia’s circular economy transition (DCCEEW 2024a). It includes an overarching goal of doubling circularity by 2035 and sets clear priorities and targets to reduce waste and keep materials in our economy for as long as possible. The framework identifies resources as one of 4 priority sectors that will drive the transition and deliver on our net zero, environment and economic agendas.
Mobilising private capital for sustainable finance
Sustainable finance can support the sector’s net zero transformation. It can assist in funding climate mitigation and adaptation efforts, such as through financing more efficient, low‑emissions technologies.
The Australian Sustainable Finance Taxonomy provides common definitions for sustainable economic activities, helping to drive private investment and support Australia’s path to net zero emissions. The Taxonomy includes key mining and metal activities, particularly those with a role in the transition.
The government will publish best practice transition planning guidance in 2025. The voluntary guidance will complement Australia’s climate‑related financial disclosures regime and help organisations navigate existing international frameworks and relevant domestic considerations for robust transition planning.