This research explores how everyday Australian businesses are experiencing the transition to a clean economy.

The Australian Industry Group wanted to understand more about the drivers of change, and their relationship to emerging skills and workforce needs.

For the businesses already on this journey, researchers sought to understand how skills and workforce needs were changing. They also wanted to uncover examples of best practice to help others and inform policy directions and support.

Overall, the researchers wanted to provide a 'real time' snapshot of Australian businesses navigating this transition, including the factors driving their decisions and business strategies, and what that might mean for jobs, skills and workforce capabilities going forward.

The researchers conducted 31 semi-structured interviews with a range of Australian businesses. The detailed interviews were conducted in July and August 2023, and provided both quantitative data and qualitative insights. Interview participants were drawn from a broad range of industries including manufacturing, construction, engineering, health, food, electrical and packaging. There was only one business from the clean energy sector.

Key recommendations:

• Policy-makers need to set clear national policy objectives, provide the right pathways and incentives, and to communicate them clearly. This will give businesses the confidence to invest and take action for the medium to longer term.
• Business leaders will need the capability and foresight to see what’s over the horizon, to understand the regulatory and policy framework and formulate their strategies accordingly.
• The education and training system needs to work as an effective partner in developing the skills and capabilities needed.