Next week's federal budget is expected to include funding for an energy transition authority to assist communities affected by the closure of coal-fired power stations and mines.
The need for an authority has been identified by union and business groups as regions such as the Hunter face unprecedented challenges over the next decade.
The federal government remains tight-lipped about details of the package, however, Climate Change and Energy Minister Chris Bowen last week agreed "there's always more to do" in regard to assisting communities.
"The government has established a Net Zero Economy taskforce to develop a whole-of-government approach to ensure workers, regions and industries get the coordinated support they need to manage the impact of inevitable closures of ageing assets and to reap the benefits of the new investment and new industries the transformation brings," a spokeswoman for the minister told the Newcastle Herald on Wednesday.
"We will have more to say on next steps throughout the budget process."
Australian regional transition authorities have played a pivotal role in rebuilding communities in Victoria's LaTrobe Valley and in Collie in Western Australia over the past decade.
While models vary, an authority's key role is to fund and co-ordinate regional economic diversification programs designed to deliver sustainable and secure jobs in new and emerging industries.
NSW Labor committed during the recent election campaign to the establishment of Hunter clean energy transition authority.
About 100 Eraring Power Station workers rallied in support of a transition authority last week.
The event, organised by the AMWU, focused on the role that an authority would play to ensure coal industry contractors were supported to find new employment and retraining opportunities following the closure of mines and power stations.
Australian Conservation Foundation energy campaigner Jaclyn McCosker said she was hopeful the budget would provide funding for the establishment of an authority.
"In the absence of a dedicated national body to steer the transition, it's been left to members of affected communities to advocate for our needs," she said.
To be effective, the transition authority would need to have regulatory power, independence and financial sustainability.
"We would like to see the authority include representation from industry, unions and affected communities, including civil society and First Nations representatives," she said.
"This sort of body is needed to support, coordinate and complement existing state and regional transition plans. It's particularly important for regions experiencing the closure of coal-fired power plants."
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