Just Transition: Lessons from home and abroad

11 minute read 30.09.2025 Leyla Dixon, Sarah Walters, John Hickey and Amanda Martin

Beyond the Net Zero Economy Authority Act 2024 (Cth), state schemes and global case studies provide lessons for employers. We outline what this means for workforce planning and share practical steps for a fair, well-managed transition to a lower carbon economy.

Key takeouts

Early and thorough planning tailored to your workplace's unique circumstances is crucial. This includes assessing the current situation, identifying challenges, and developing a detailed roadmap to ensure a smooth transition.

The involvement of, and genuine consultation with, key stakeholders including government, impacted businesses, the community, unions, and workers can contribute significantly to smooth processes.

Key commitments such as appropriate funding (from companies and government including options such as alternative use of site locations) and meaningful employee support programs should be considered early.

Last month we published Part One of our Just Transition series, summarising the key aspects of the Net Zero Economy Authority Act 2024 (Cth). In this article, Part Two of the series, we explore how state-based schemes and practical examples, both in Australia and overseas, are shaping workforce transition planning and what employers should consider now.

State-based legislative schemes

Some Australian states have also legislated schemes to guide the transition to a lower carbon economy and made announcements to support workforce transitions, including:

New South Wales Navigation Show below Hide below

The New South Wales Government enacted the Climate Change (Net Zero Future) Act 2023 (NSW) which sets targets for emissions reduction. By 2040 all 4 of the state’s coal-fired power stations, and 32 of its 39 coal mines are expected to close.

The NSW Government has announced that it intends to shortly legislate to establish a 'Future Jobs and Investment Authority'. The Authority will support coal-producing communities to transition away from reliance on the coal industry and toward a more sustainable economic future. Significant funding has been announced to support this and a 'Future Jobs and Investment Fund'.

Under the proposed model, the Future Jobs and Investment Authority will include:

A coordinating Authority led by a Chief Executive Officer with a mandate to deliver tangible outcomes for coal-reliant regions.
The establishment of four local Divisions (in the Hunter, Illawarra, Central West and North West) to support the Authority. This is aimed at ensuring representation to the Authority and decisions are informed by local needs and priorities. Representatives of industry, workers, local government and community groups will be included in the Divisions.
An advisory board reporting to the Minister for Natural Resources chaired by an independent Chair/Advocate.
Collaborating with the Net Zero Economy Authority and the federal government.

Queensland Navigation Show below Hide below

In April 2024, the Queensland Government passed the Clean Jobs Act 2024 (Qld) (the Clean Jobs Act) and the Energy (Renewable Transformation and Jobs) Act 2024 (Qld) (the Renewable Transformation and Jobs Act) which aim to reduce greenhouse gas emissions by setting renewable energy and emission reduction targets.

The Clean Jobs Act sets targets for emissions reduction while the Renewable Transformation and Jobs Act sets renewable energy targets and also includes provisions for establishing a job security guarantee in relation to affected energy workers, including through the establishment of the $150 million Job Security Guarantee Fund. This fund supports the implementation of the guarantee, including reskilling and upskilling programs, relocation assistance, job placement services and financial assistance for transition planning

The guarantee outlines the government's aim to provide financial and practical support to affected energy workers during the transition. This includes providing training for, and access to, other employment opportunities in the energy sector, and funding personalised support services, skills and relocation support, and retention and transition incentives.

Other arrangements have also been implemented such as an Energy Industry Council with representatives from government, unions, and industry to oversee the transition, advise on workforce needs, and ensure the guarantee is implemented effectively.

Just Transition processes in practice – local examples

Collie Power Station (WA): a just transition success story

The Western Australian government has been actively involved in planning for the transition of Collie, a town historically reliant on coal mining and coal-fired power generation. In 2017, the State Government announced the closure of Synergy’s Muja A and B coal-fired power station units. This decision led to a coordinated effort to mitigate the socio-economic impacts of moving away from coal through the Collie Just Transition Plan, released in 2020. Muja Power Station is set to close in stages by October 2029, with the Muja C Unit 6 scheduled to retire in April 2025.

The plan was co-designed by the 'Just Transition Working Group' comprising representatives from government, industry, unions, and the local community. The plan was built around four main goals: supporting workers affected by the transition, growing new industries in the region, recognising Collie’s history while planning for its future, and ensuring the transition is fair and inclusive.

The State Government backed this plan with significant funding. Since 2019, more than $662 million has been committed through the Collie Transition Package. These funds are being used to attract new industries, support local businesses, and create long-term job opportunities. In addition, over $1 billion has been allocated to build one of the world’s largest battery energy storage systems in Collie. This project will also boost the state’s renewable energy capacity and help position Collie as a hub for clean energy.

Synergy has introduced a Workforce Transition Program that offers tailored support for employees affected by the power station closures. Options include retraining, moving to other roles within Synergy or other sectors, voluntary redundancy, or early retirement. The Collie Jobs and Skills Centre was also expanded and moved to a central location to make it easier for people to access career advice and training.

The Net Zero Economy Authority decided not to implement a formal Jobs Plan for the closure of Muja C Unit 6, however it will consider the role of a Jobs Plan for the scheduled retirement of the power station in 2029.

Torrens Island Power Station (SA): site transition and workforce support

AGL Energy’s current transition of the Torrens Island Power Station involves the phased closure of the station with this latest phase resulting in the closure of Torrens ‘B’ by 30 June 2026, impacting around 150 employees and contractors.

Similar to Synergy in Collie, AGL is committed to supporting workers through the development of individual transition plans for all affected employees. These plans are tailored to each person’s circumstances and may include retraining, redeployment, or support for retirement (including additional redundancy payments). To facilitate this, AGL has held, and plans to hold further, 'Transition Expos' to provide employees with information on new career pathways, opportunities for upskilling and retraining, and guidance on transitioning to retirement.

The Torrens Island transition also involves significant investment in transforming the site into an integrated low-carbon 'industrial energy hub'. AGL has invested $475 million in major new projects on Torrens Island, including the Barker Inlet Power Station, commissioned in 2019, and a 250 MW Torrens Island battery, which commenced operations in 2023.

This dual approach, managing the closure of legacy assets while developing new energy projects on the same site, is expected to assist in ensuring ongoing economic activity in the region and new employment pathways for the impacted workforce.

In addition to the plans already in place, the community of interest consultation process for the closure of AGL's Torrens 'B' station is the first major test case for the Authority's role under the Act. Key submissions received from stakeholders through this consultation process have included calls from unions and academics for the Authority to use Torrens as a test case to seek a determinations to implement a Jobs Plan to support transitioning workers. The Authority is yet to make its decision on whether it will do so.

Eraring Power Station (NSW): consultation and next steps

In May 2025, the Authority began a community of interest consultation process for Origin Energy's Eraring Power Station, due to close in August 2027.

Origin is providing support to employees including a transition support package which includes career transition support, re-skilling and redeployment into new roles where possible. Similar to the other examples above, Origin has committed to investing in alternative infrastructure near the current power station, including a large-scale battery adjacent to the power station.

The Authority is presently consulting and working closely with Origin, businesses within the supply chain and unions to understand impacts and the support being provided. Publicly available submissions provided as part of that consultation emphasise Origin's view that a Jobs Plan should not be implemented for Eraring in light of the various existing arrangements in place. Conversely, submissions from unions advocate for a Jobs Plan. Amongst the submissions are also some from academics who have communicated a range of views, including that the timeline for transition planning is too short.

As with Torrens Island, the Authority will make an application to the Fair Work Commission if it decides that a Jobs Plan is necessary.

Global example: Germany - coal phase-out and worker support

As Australia navigates the complex task of phasing out coal-fired power, Germany offers a particularly instructive model. Central to Germany’s strategy was the establishment of the Coal Commission in 2018. The Coal Commission is a multi-stakeholder body comprising industry, unions, environmental groups, scientists, and regional representatives with a mandate to develop a socially acceptable pathway to phase out coal while supporting affected workers and communities.

The Coal Commission’s recommendations led to Germany's parliament passing key laws which provide that coal-fired power generation in Germany is to be phased out gradually, but by no later than the end of 2038; and which establish a legal framework that supports coal-mining regions facing economic changes due to the coal phase-out (including government funding for operators and regional development).

For workers directly affected by the transition, Germany has introduced a range of worker-focused policies, including early retirement schemes which provide income support for workers aged 58 and older until they reach statutory retirement age.

Germany has also funded a range of active labour market initiatives to support continued employment for those able and willing to transition into new roles. These include publicly subsidised retraining and upskilling programs tailored to regional economic needs, as well as support for internal job transfers within companies. Employers are encouraged to redeploy workers into emerging sectors, such as renewable energy, environmental remediation, and advanced manufacturing, with financial assistance available to facilitate these transitions. Despite its strong legislative foundation and significant financial commitments, Germany’s coal transition has also encountered several implementation challenges and criticisms including from climate advocates who say this is too slow to align with the urgency of global emissions reduction goals and from those who question to whom and how funding and transition funds should be provided to ensure timely roll out of appropriate programs and supports.

Germany’s experience provides valuable guidance for Australia. The emphasis on inclusive, multi-stakeholder dialogue, tailored worker support and noting the implementation challenges serve as a timely reminder – transition plans, programs and funding must be deployed efficiently to deliver meaningful, secure, and future-focused employment outcomes.

Academics also point to Germany as a best practice example, emphasising among other matters the importance of developed strategic planning, long lead times (5 – 10 years), the inclusion of all impacted workers, and the creation of a national/industry wide agreement that sets out baseline principles and funding arrangements for the transition process. Academics argue that unlike enterprise level industrial instruments or awards which were never designed for the purpose of transition planning, national/industry wide agreements provide a framework for employers, workers, unions and governments to then refine processes at the local level.

Where to from here: what employers should do now

The key message from all these examples is the importance of transition planning – with achievable lead times, involvement of relevant stakeholders, appropriate funding and support programs.

Whether or not these requirements arise as a result of legislated obligations, businesses are expected to support their workforces, their impacted stakeholders and their communities to navigate the changes involved with transitioning to a lower carbon economy.

The transition to a lower carbon economy will impact all employers but some more quickly than others. It is imperative for all employers to start turning their minds to:

How decarbonisation will impact their operations.
What those impacts will mean for their workforce – what work will stop, continue or need to be performed differently.
For roles which will not continue, what supports will be provided by employers for those workers to transition into new roles, or new industries.
What government supports are available for workers to access training to upskill for the jobs of the future.
How employers constructively engage with their workforce, unions and their local communities to ensure a just transition.

The time to act is now. Get in touch with our experts to further discuss practical steps, stakeholder insights, and transition planning tools. Be the company that sets the benchmark for a Just Transition.