Australia’s industrial regions play an essential role in the nation’s economy. They also produce a significant proportion of Australia’s emissions and contribute a considerable amount to the country’s energy use. Five regions alone – Gladstone, Pilbara, Kwinana, Hunter, and Illawarra – supply a combined A$166 billion to Australia’s Gross Domestic Product and employ 2.9 per cent of Australia’s workforce. They also account for more than 16 per cent of Australia’s Greenhouse Gas emissions each year.

This paper argues that renewable energy industrial precincts (REIPs) are a practical solution to scale up and accelerate climate solutions in carbon-intensive industries. They offer industry the chance to capitalise on Australia’s abundant clean energy sources as global markets shift towards decarbonisation. 

Businesses in industrial precincts can benefit through access to low-cost renewable energy, shared user infrastructure, labour pooling, input sharing, knowledge spillovers and circular economy practices. 

While significant investment and additional renewable energy capacity are critical, ambitious policy action can unlock substantial economic opportunities.

A national place-based industrial decarbonisation program delivered by the Australian Government in partnership with states and territories will allow REIPs to be rolled out in a coordinated way, building on existing initiatives to derive greater impact.