Just transition out of coal-fired power: Policy lessons from Australia's automotive sector closure

Abstract

Nearly three-quarters of Australia's electricity generation is coal-dependent with fossil fuel-led electricity contributing to over a third of Australia's CO₂ emissions. Climate change imperatives are calling for permanent shifts to these patterns, leading to early closure announcements of several coal-fired power plants across the country. Although the pace and scale of the energy transition are unprecedented, the closure of large-scale industries is not uncommon. The most recent closure in Australia's industrial past that remains vivid in the nation's collective memory was the end of nearly 70 years of automotive manufacturing.

Drawing on expert consultations, and applying just transitions and transition management thinking, this paper identifies four key insights from the auto sector closure experience. These offer compelling pointers to guide socio-economic transformations in frontline regions that are likely to face challenging, often deeply personal, impacts resulting from the closure of coal-fired power stations over the coming decades.