TRANSITION & RECOVERY AUSTRALIA

Independent consulting support for communities and government

ABN: 29 655 808 398

Fundamentals for Coal Transition

in Regions
September 2022

Karen Cain and Nick Decker

www.traus.com.au
Who are we?
Karen Cain Nick Decker
Director, Transition and Recovery Australia Director, Transition and Recovery Australia
Chair of the Eminent Panel for Community Engagement, Victorian Forestry Former Executive Director of Recovery Strategy at Bushfire Recovery Victoria
Former CEO of Latrobe Valley Authority Former Director of Planning and Coordination at Latrobe Valley Authority
Karen has significant senior experience working across government, leading Nick is an accomplished public sector leader with a depth of experience in
strategic innovation and community-facing reform programs. designing transition and recovery strategies, plans and funding packages.
As CEO of the Latrobe Valley Authority over its first 5 years, Karen led industry
His expertise in establishing new agencies and functions is highly regarded,
and community transition across the Latrobe Valley and demonstrated an ability
having been instrumental in the establishment of the Latrobe Valley Authority,
to deliver on issuers that matter most to community and government.
Bushfire Recovery Victoria, as well as the Priority Projects Unit within the
During her tenure the LVA adopted a place-based method that delivered real Department of Premier and Cabinet.
transition progress for workers, businesses and communities across the region.
Achievements include designing the Latrobe Valley Economic Growth Zone
Achievements include a best-in-class Worker Transition Service, the creation of
package of supports following the announced closure of Hazelwood, developing
more than 2,000 jobs, and the delivery of more than $200 million of local
the Victorian State Recovery Framework and Plan for the 2020/21 Black Summer
infrastructure projects.
Fires and delivering multiple successful whole of government budget bids over his
The LVA is now widely recognised as a successful model of transition, grounded career.
in community partnerships and building local innovation capacities, that other
With more than 15 years’ experience in policy and strategy roles across Victorian
jurisdictions in Australia and internationally are now looking to adapt and emulate.
Government in social and economic portfolios, Nick has a wealth of strategy and
Karen has and continues to make significant contributions to state and national execution capabilities that now forms the basis of his consulting work.
debate, practice and policy on coal transition, place-based innovation, renewables
These capabilities include strategic planning and governance, political
investment and sustainability. She has presented at OECD conferences in Sweden
management, policy design, project delivery, and developing reform narratives
and South Korea, an international round table in South Africa and participated in
and communication products.
the EU Smart Specialisation conference in Spain.
He has led large teams and built high-performance cultures that succeed in high-
As Director, Community Transition Forestry within the Department of Jobs
pressure and ambiguous working environments, through genuine care for people
Precincts and Regions for two years, Karen has successfully led engagement with
and an unrelenting focus on delivering public value outcomes.
communities across Victoria as part of the Victorian Forestry Plan
implementation. Nick was part of a team that won the gold national IPAA policy innovation award
in 2014 for their work to reform social services in Victoria. His achievements at the
Currently she chairs an eminent panel for engagement on immediate forestry
Department of Premier and Cabinet were recognised with the highest individual
protection in four important sites across Victoria and is a board member of
accolade in 2016.
V/Line.
Nick holds an Executive Masters in Public Administration from ANZSOG, a
Karen is a fellow of Leadership Victoria’s Williamson Community Leadership
Bachelor of Arts (political science) and is a member of the Institute of
Program and was awarded the IPAA Victorian Top 50 Public Sector Women
Management Consultants.
Award in 2018.

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Our mission

We established Transition & Recovery Australia to provide trusted expert advice for communities and
governments navigating the challenging work of transition.

There is an urgent need in coal communities and industrial heartlands for strong leadership and coordination
to effect transformational change for the long-term prosperity of workers, businesses and communities.

These regions need the right support to build upon their strengths, to take up the emerging opportunities,
and to mitigate against the worst effects of losing their central industries - industries that have sustained
communities for generations, and have powered the growth and prosperity of our nation.

Achieving successful transition will take the collective efforts of all levels of government, unions, workers,
corporations, local industry, the research and education sectors, philanthropy, investors, not for profits, and
most importantly – the people who make up these communities.

Harnessing this collective effort requires a contemporary approach to regional development, that involves a
rethink of the traditional structures and processes of governance and partnerships, policy and response
design, and of how we measure and track progress.

Transition & Recovery Australia has taken as its mission to convert our hard-won lessons and expertise from
leading the Latrobe Valley Authority into a framework that can be applied and add-value for all regions and
communities charting their own course through transition to a low-carbon future.

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What are the fundamentals for community transition to succeed?
Designing and delivering transition solutions that make a real difference for workers, businesses and community is complex and challenging. From the outset, it requires a state
government backed local/regional coordination agency. This agency needs the authority and flexibility to be innovative and responsive – the standard mode of operating won’t cut it.
Regional agencies are the backbone for putting in place seven pillars that encompass the ‘how’ of transition and create the conditions for success

Critical need to set up a state government backed local/regional coordination agency that has the authority to act on the fol lowing 7 pillars:

1. Embedded local 2. Flexible & adaptive 3. Local context 4. Applied research for 5. Genuine 6. Co-investment for 7. Local data collection
leadership structures analysis for tailored best chance success partnerships to collective benefit and analysis
actions achieve impact
Employ local people Develop the practice of Draw on local, national Build expectation and Collect data, monitor
and experts with a transition work in Undertake a process of and international Build specific needs- demonstrate and analyse for
range of skills, building community over time context analysis over expertise, knowledge based partnerships and commitment to continual improvement
the team over time and adapt it to the time in partnership with and research to adapt inclusive decision investment and and regularly report
according to need, with emerging needs, workers, unions, and pilot potential making governance collective use of back results to partners
a local base that is through adjustable business, trainers, solutions, including the through specific resources, actions and and the general public.
open to the public. locally applied policy, researchers, application of design targeted activities knowledge for mutual
This requires new data
staffing and funding. government and theory, public sector supported by flexible, benefit of individuals
Staff are supported to collection processes to
community to identify innovation, evidence of responsive funding and the community.
be entrepreneurial in Strong accountability be established, given
evidence of gaps and change and impact, for arrangements designed
the development and for the delivery of This involves the paucity of local
opportunities for effective and evidence- locally and agreed
delivery of solutions outcomes that focuses participants having a data available in
immediate, mid-term informed place-based centrally.
working with people, effort on positive genuine stake in the regional Australia.
and long term actions. regional development.
businesses and groups tangible results, while expenditure and
seeking assistance providing high realisation of positive
flexibility for the ‘how’. impacts.

Taken together, these Seven Pillars establish the conditions at a local level for designing and delivering targeted and impactful support to workers, business
and community, that will contribute to their long term prosperity.

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What’s the pathway to impact?
With the seven pillars in place that create the conditions for successful transition, the work of the agency shifts to the management of collaborative multi-level governance to identify and
make decisions on the required transition actions.

Seven Pillars for Collaborative multi-level governance, facilitated Actions that are targeted, evidence-
establishing conditions by the State to make good decisions based and deliver measurable benefits

Regional Authority (State / Local Govt sponsored)

1. Embedded local
leadership Government Commonwealth agencies
Aligned policy,
2. Flexible & adaptive State Government agencies
regulation &
structures Workers are
support
supported to Businesses are
structures Local Government
transition to new jobs supported to innovate
3. Local context analysis
and opportunities and grow comparative
for tailored actions
Power station and mine Mutually advantages
Business
operators dependent
4. Applied research for Investment, Communities are system
Green energy and industry
best chance success innovation & supported to live, Environment is
investors
social / env. connect and thrive in managed and
Corporate and business new ways maximised for social
responsibilities
5. Genuine partnerships community and economic benefit
to achieve impact
Community Local community groups
6. Co-investment for Articulated
collective benefit needs, Union organisations
priorities and
contributions Not for profits and
7. Local data collection Philanthropy
and analysis
Research &
Education & training sector
education
Skills, capability Researchers & academics
and knowledge
building Think tanks and research
institutes

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What do transition actions look like?
There are four domains of activity that encompass the majority of transition actions – support for workers, businesses, communities and the environment. There are many examples of
potential services, programs and investments that can be selected and adapted for each community’s unique context and opportunities.
E.g.
• Comprehensive worker
transition service
• Training and skills for new
job opportunities
E.g.
• Community facility upgrades
• Community leadership capability
building
• Community wellbeing support
(local clubs, associations)
Four domains of connected transition action
(the ‘what’ of transition)
E.g.
Workers are supported • Supporting sectors of comparative
to transition to new jobs Businesses are advantage & diversification
and opportunities supported to innovate • ‘Buy local’ procurement and supply chain
and grow comparative program
Mutually advantages
• Small business advice and support services
dependent
Communities are system
supported to live, Environment is
connect and thrive in E.g.
managed and
new ways maximised for social • Realising opportunities for society benefit
and economic benefit from local land and water use
• Activating spaces and places (e.g. parks,
trails, tourism development)
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Maturity model of communities undergoing transition
The graphic below steps through the development and adaptation over time of the transition approach. Responsiveness and flexibility is key to harnessing the region’s opportunities and
strengths to develop targeted and effective transition activities.

Stability Pre-action Immediate action New opportunities Backbone institutions System change

Long-term economic The world is different
drivers of employment now!
Secure sense of place What do we do?
and identity Can’t we save / keep /
continue?
We have a long proud
history and we don’t
want to lose it
Acceptance and re- BAU Government Institutional security Embedded new ways
orientation to new approaches aren’t Partnership evolution of working
normal working Long-term strategy Resilience,
Call to action Investment in new Growing evidence sustainability
Immediate support for approaches and ideas base A high-functioning
workers What needs to be Social and economic civil society
Economic stimulus different? structures more solid Confidence and
funding Who can we learn from? Translation of research willingness to fully
Emergence of new Where do we start on the into application embrace change
thinking long-term? Local support for the
How can we bridge from transition approach
the past to the future?

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What’s different about our contemporary approach to transition?
Contemporary regional transition policy brings together insights from transition efforts that have demonstrated success and from the latest policy developments and research occurring in
Australia and internationally. Drawing heavily from the practices of the European Commission’s Smart Specialisation Strategy (S3) as well as the conceptual framework of ‘Just Transition’,
there is a growing body of evidence that points to the profound and lasting benefits of adopting and adapting the key aspects of contemporary transition policy.
Transition and Recovery Australia have developed the following table to compare and contrast contemporary transition policy with standard economic and regional development policy.

Policy aspects FROM (Standard economic and regional development policy) TO (Contemporary regional transition policy)
Government agency • Department of Regional Development or similar line agency of government • Dedicated Regional Authority, supported by a National Transition Authority

Government roles • Policy designer, rule creator, decision-maker • Facilitator of ‘top down’ and ‘bottom up’ processes that create and decide

Governance • Ad hoc involvement of other organisations on a program basis • Multi-level governance that is inclusive and recognises unique contributions

Stakeholder approach • Engagement forums, surveys and consolidation of views to inform policy • Deep engagement with local leaders, innovators and connectors

Stakeholders involved • ‘Usual suspects’ that include career representatives and vested interests • Reaching out to everyone with a stake or a contribution to make

Stakeholder roles • Static, pre-defined roles that are predictable • Role flexibility that changes according to context, need and opportunity

Investment source • Expectation of continual significant investment from government • Repurpose existing government funding and jointly resource projects

Investment approach • Large scale ‘big bet’ investments based on extensive business cases • Seed funding innovations, and incremental value demonstrations

Policy assumptions • A ‘deficit’ perspective of regional communities that encourages dependence • An ‘aspirational’ perspective based on existing strengths that are built upon

Policy process • Problem definition and response design using available evidence and logic maps • Process of discovery, learning and co-design that involves local people

Program funding • Inflexible pre-determined funding streams and programs • Funding flexibility and discretion backed by robust process

Program design • Programs designed upfront with known product or service • Programs are designed in-place, adapted to local needs and context

Program rollout • Centralised consistency of program rollout across state or region • Tailored programs that respond to the unique context of places in transition

Program mix • Discrete programs that put together form a loose package of support • Cohesive programs that connect and reinforce one another

Service delivery • Deliverer-recipient transactional relationship • Partnerships based on genuine personal connection and trust

Job creation basis • Luring major employers with incentive payments and subsidies • Supporting local innovation, products and market access for jobs growth

Data collection • Utilise macro, region-wide socio-economic data from departments • Generate new local datasets through primary data collection

Measurement • Measure output indicators of programs and cohorts (throughput, timeliness etc) • Measure individual, community and region level outcome indicators

Impact • ‘Boom and bust’ impacts that mirrors government spending in the region • Whole of community system and behaviour change that endures

Evaluation • Summative assessment that aims for a clear finding of success or otherwise • Formative evaluation throughout implementation to continuously improve

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