This report outlines ways governments, developers and the energy sector can ensure the energy transition is fair, supports the people and communities affected, and builds social licence for long-term success. It finds that reaching net zero means nothing short of a complete overhaul of Australia's energy system – rolling out renewables and storage projects at record speed. But this transformation won’t succeed without getting communities and households on board. It’s not enough for people to know they’re doing good for the climate – they need to trust that they will see real social and economic benefits in their everyday lives.

Principles for an inclusive net zero economy

1. Enable those affected by the transition to have a say and access to choices.
2. Ensure those who face vulnerability are not made worse off.
3. Ensure equitable sharing of the transition's benefits and costs.

To achieve these principles, reforms are needed throughout Australian energy markets. The report outlines three key themes, and underlying recommendations, for ensuring fairness and social license in the energy transition:

• creating the policy conditions necessary to ensure that energy prices are no higher than they need to be to support investment
• ensuring regulatory and fiscal policy settings are designed to support households without the means to afford rooftop solar and batteries
• structuring government support for the energy industry to deliver broad social and economic benefits for Australian society, especially the communities hosting the infrastructure.