First Nations engagement and benefits sharing
The Australian Government acknowledges and respects the unique relationship First Nations peoples and communities have with the environment including land, sea, waterways, flora and fauna. The Commonwealth and states and territories have committed to Closing the Gap Target 15. This aims to protect Aboriginal and Torres Strait Islander people’s legal rights or interests on land and sea.
First Nations communities are connected with the land and water of their Country, and decommissioning activities both offshore and onshore may affect them. Where appropriate, the benefits gained from growing a decommissioning industry should also be shared with First Nations people, businesses, and communities where projects are taking place.
Relevant First Nations stakeholders must have the opportunity to fully engage in decommissioning processes, including being closely consulted ahead of any activity commencing.
The Offshore Environment Regulations require titleholders to undertake genuine consultation with people who may be affected by their projects over their lifecycle. Genuine and appropriate engagement for First Nations groups in impacted places begins with identifying relevant First Nations stakeholders and engaging as early as possible.
Genuine engagement with First Nations communities supports meaningful discussion on access to land and local employment and business opportunities, skills development and community investment. First Nations communities need a culturally sensitive consultation process to make informed decisions. This will support improved outcomes for First Nations communities and support targets and outcomes under the National Agreement on Closing the Gap.
Mechanisms that encourage strong industry partnerships and benefits sharing with local communities further strengthens genuine partnership and engagement. This includes building a shared understanding of the aspirations of First Nations communities and the economic opportunities presented by decommissioning activities. For example, working with industry to set targets for First Nations employment, use of First Nations businesses or equity sharing.
Partnering with local communities
Australian research carried out by the National Decommissioning Research Initiative (NDRI) found varied community views on decommissioning activity. It is clear the community wants to ensure that offshore infrastructure is removed safely, and that the marine environment is protected (NDRI 2022). Communities located close to offshore oil and gas regions were particularly likely to have a lot of interest in disposal options. This includes how offshore infrastructure could be brought safely onshore and decommissioned.
Government policies and processes should address the needs of those directly impacted by decisions related to decommissioning activity. If not well managed, some aspects of decommissioning may negatively impact local communities. Understanding local community perspectives helps the decommissioning industry to meet social expectations.
For example, increased road transport to move decommissioned material and workers can raise concerns with safety, more emissions, poor air quality and road conditions, and increased traffic volume (CSIRO 2024b). The decommissioning industry can learn from other large-scale operations to minimise these impacts by working directly with local communities.
It is also the case that capturing the estimated $60 billion in economic activity can deliver new investment into local businesses that service the decommissioning supply chain, supporting sustainable, high-quality jobs in regional and remote locations.
Actions
To ensure local communities and First Nations people are engaged in and benefit from decommissioning activity, the Australian Government will:
- as part of the Offshore Environmental Management Review, consider options to clarify consultation requirements for offshore petroleum activities, including decommissioning activities, to clarify how consultation should occur with Traditional Owners, First Nations peoples and communities, local communities, businesses, the workforce, and other stakeholders
- promote benefit sharing opportunities, where appropriate, to ensure that First Nations people and industry are partners in the transition to net zero. This includes new job opportunities, improved education programs, and direct community investment
- support the work of the National Indigenous Australians Agency and broader government efforts to achieve the Closing the Gap targets
- support the decommissioning industry to engage First Nations people and local communities through actions of the Offshore Decommissioning Directorate to:
- facilitate industry engagement with the Northern Australia Infrastructure Facility, which supports projects that deliver public benefit to the north through new jobs, regional income, business for local suppliers and Indigenous employment opportunities
- coordinate with the Net Zero Economy Agency where decommissioning, as part of the net zero transformation, could benefit from greater community understanding and support.