The Net Zero Economy Agency commissioned the Australian National University through an open tender process to produce a rapid research report to inform the early design of a national Net Zero Economy Authority. The paper addresses three topics as they relate to the net zero transition: economics, social change, and regional communities. The authors have drawn upon their collective expertise and experience and reviewed global research and case studies around similar transitions and transition-focused institutions.

The paper is based on an initial selective desktop assessment drawing on the authors’ expertise, available research on transition globally and in Australia, and international experience with transition institutions. It identifies broad insights as well as specific elements relevant for the NZEA. It does not provide examination of Australian government architectures or specific recommendations on institutional design, thorough examination of specific regional examples, comprehensive review of international experiences, nor assessment of performance of specific policy instruments. 

Key themes

• A broad remit and taking a comprehensive approach benefits institutions guiding the net zero transitions. The NZEA could usefully focus both on fostering new economic and industrial growth opportunities and on proactive management of regional transitions. Successful guidance will usually require a broad portfolio of instruments comprising governance, regulatory, and fiscal instruments. 
• Coordination within and across governments is a key function for a central agency of this nature. The NZEA could play a co-ordinating role across federal government departments and agencies/authorities, and engage with State/Territory and local governments.
• Strategy setting as well as monitoring and analysis are important aspects for success. The NZEA could establish systems of monitoring, reporting and evaluation of progress with the net-zero transition and impacts of policy interventions. It could also set strategy in areas such as linking net zero sector plans with green industry policy, investment facilitation and regional and social transition objectives. 
• Inclusivity and enabling partnerships outside government are important functions. The NZEA could facilitate or lead bottom-up strategy-setting by engaging a wide range of stakeholders, including regional communities as well as business and civil society. It could also help lead Australia’s engagement on net-zero transition, with a focus on the Indo-Pacific. 

Key findings and considerations for the Agency and the Authority fall under the following headings.

• Managing and monitoring energy transition
• Identifying industrial opportunities
• Social and regional dimensions

The paper does not represent a Net Zero Economy Agency or Australian Government view and remains the work of the authors.