Bridging the gap: Powering Australia's energy transition with trust and social licence

As the world grapples with Net Zero, it is important to recognise that it is not just a technology and policy endeavour but also a human one. Earning social license and trust with communities and stakeholders is critical.

KPMG’s Human Side of the Energy Transition research highlighted a paradox in public perception - whilst 63% of Australians support the concept of the energy transition once explained - only 25% have heard the term - and a mere 23% claim to have at least some understanding of what it entails.

This disconnect between awareness and understanding presents both challenges and opportunities for industry, government, and communities.

Concerns about the rising cost of energy, and declining confidence that Australia will reach its energy targets pose significant challenges to successful implementation of our energy transition plan. Increasing public awareness and knowledge is a key step towards ensuring a just energy transition. As the urgency to meet 2030 climate targets intensifies, it’s more crucial than ever to uplift understanding of the energy transition.

Social licence - the gaining and maintaining of support for a project assessed by examining the beliefs, perceptions and opinions held by the impacted communities and stakeholders - is critical.

Trust is the foundation of social licence. Yet trust in institutions, including energy companies and governments, has eroded in many parts of the world. Rebuilding trust requires:

1. Integrity
2. Competence
3. Shared Value

A lack of social licence can lead to project delays, increased costs and undermine public support for the energy transition itself. However, robust social licence can accelerate the transition. When communities understand, trust, and accept clean energy initiatives, positive action can follow.

To bridge the awareness gap and build social licence, we must prioritise:

1. Inclusive and early engagement: Engage communities in decision-making processes, addressing concerns and incorporating local knowledge. Community goodwill is invaluable.

2. Clear and consistent communication: Simplify the complex concepts into relatable terms that resonate with diverse audiences. Projects can be undermined if there is a perception that only some people are ‘locked out’ of the conversation.

3. Tangible Shared Benefits: Highlight how the energy transition positively and equally impacts communities and industry. Benefits must be shared in demonstrable ways.

4. Education Initiatives: Uplift understanding of energy transition for all Australians.

5. Transparent Progress Reporting: Regularly share progress, challenges, and future plans in order to build trust. To be credible, it is important that setbacks and delays are not glossed over

Australians are generally eager to learn and engage. By focusing on education and engagement, we can transform passive support into active participation.

The path forward requires a collaborative effort. Government, industry, academia, and society must work together to raise awareness, foster understanding, and build the social licence necessary for a successful energy transition. By doing so, we can transform the current paradox of support without understanding into a powerful force for change and engage, educate, and empower communities to become active participants in shaping Australia’s energy transition.

As Australia works to transition to a sustainable future, it is essential there is a shared understanding of the energy transition to ensure that, as far as possible, no-one is left behind.