With the Industry Climate Change Conference kicking off in Adelaide today, the minds of business owners, government and thought leaders will turn to matters of emission reduction and sustainable practices. What better moment for our state to make a statement on the global stage and commit to becoming one of the world’s largest Green Economic Zones.
Taking this step would entrench sustainable business practices, help reduce environmental impacts and attract investment into renewable energy, sustainable manufacturing, and eco-tourism. As a Green Economic Zone (GEZ), South Australia would become a preferred destination for businesses seeking to build on their ESG credentials.
It is the perfect vehicle to fully realise the potential of our state’s advantages across renewable energy, hydrogen, manufacturing, investment, and skills.
Establishing South Australia as a GEZ would likely be a long-term project, evolving as our state and nation work toward achieving net-zero by 2050. Our other goals could include increasing the scale of our circular economy, developing our hydrogen industry, and transitioning to advanced manufacturing.
South Australia has been at the forefront of renewable energy for some time. In 2022, we were a global leader with 70.7% of our electricity generated from renewable sources, such as solar and wind. We can use our recognised strength in renewables as the anchor for our green strategy.
In the near future, South Australia will become a 100% renewable energy state. Whether this is achieved through wind, solar, hydrogen or biofuels, it is a realistic scenario. This should not be an isolated achievement, but the marker to position South Australia as a global hub for sustainable business practices and innovation: the next Silicon Valley for renewable technologies.
The $593 million Hydrogen Jobs Plan, which aims to provide 250 MWe of electrolyser capacity and 200 MW of hydrogen-fuelled power generation by 2025, will play a key role in this. We know that the State Government is planning to provide high-energy business users with clean hydrogen energy. This would give them the capabilities to manufacture green, de-carbonised products in South Australia.
Becoming a GEZ will create jobs and attract new talent to South Australia. We won’t be able to achieve it without skilled migration and building a pool of highly credentialled locals. For this to happen, university and VET courses must produce graduates who are ready to work on world-leading renewable projects. The proposed Adelaide University merger could establish a Department of Green Energy, focusing on hydrogen and biofuels, creating an attractive pathway for our students to remain in South Australia to further both their education and careers. Combining education and employment opportunities is one solution to reversing the interstate migration of our bright young talent.
As a precursor to becoming a Green Economic Zone, the South Australian Business Chamber recently proposed the following to the State Government in our pre-budget submission:
Firstly, introduce a ‘Circular Economy Procurement Fund’ to promote and drive the transition from a linear to a circular economy where resources are used for as long as possible, waste is minimised, and materials are reused, repurposed, or recycled at the end of their useful life. Establishing this fund would also enable the State Government to allocate resources specifically towards promoting circular economy principles in government procurement processes.
Secondly, establish an electric and/or hydrogen public transport fleet with supporting infrastructure. Seeking and implementing more opportunities to use green energy, reduce carbon emissions and bolster our national and global credentials as a green state is critical. Moving the entire public transport fleet to electric/hydrogen operated vehicles would be a great example of what is possible and normalise this form of energy in our everyday lives. As vehicles are decommissioned, they should be replaced with electric or hydrogen fuel cell alternatives.
Thirdly, conduct a feasibility study on Adelaide’s potential hosting of the United Nations Conference of the Parties (UN COP). Our leadership in renewables and track record in running flagship global events, sees us well placed to make a compelling bid. Hosting the COP would attract between 20,000 and 30,000 visitors, boost the economy and further cement our credentials as a world leader in renewable energy, enhancing Adelaide and South Australia’s global image.
We anticipate the State Government has seriously considered our recommendations ahead of handing down the State Budget on 15 June. Establishing South Australia as a GEZ will have significant economic and environmental benefits for our state. It will not happen without a coordinated effort from the government and business community. As the Chamber of Commerce and Industry in South Australia we are ready to work together with all stakeholders to make this happen and ensure a prosperous and sustainable future for our state.
The decision to become a GEZ requires a bold and long-term vision. The feedback we receive from business leaders is that they are feeling positive about the direction our state is heading, but that we lack a big picture aspiration that defines us. This decision is not for the faint of heart. As a GEZ, our future decisions and focus will be guided by a set of principles that align with this philosophy and with that, we will create a clear and distinct brand for South Australia.
