First Nations at the forefront: The changing landscape of clean energy agreements in Australia

Abstract

The clean energy transition has the potential to be very beneficial for the Australian First Nations people on whose Country much of it will occur. This paper documents results of interviews with legal and financial experts who have very particular insight into the contents of benefits agreements currently being negotiated with First Nations groups for large scale clean energy developments – agreements which are conventionally confidential. The results of our analysis give reason for cautious optimism in this space, confirming that First Nations people in Australia have the legal ability to veto clean energy projects on Country. We note the wider impacts of this emergent power of veto, which makes consent more valuable to developers, but also might encourage developers to avoid First Nations Country altogether. We further observe that as First Nations groups become key stakeholders, or co-owners, in these kinds of development, they also can become exposed to significant financial risk. The need to access excellent advice for First Nations groups in Australia who are navigating these projects – as developers, co-owners, shareholders, board members and contractors – is more urgent than ever.