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Negotiating risks to natural capital in net-zero transitions

Abstract

Global and national commitments on climate imply clean energy and industrial infrastructure deployment at a speed and scale that could have serious implications for natural capital and other important land uses. Prior modelling of a net-zero emissions solution for Australia sites new renewable infrastructure on 111,000 km2 of land (approximately 1.7 times the area of mainland Tasmania) by 2060. That solution uses a single, static and certain map of land availability, making it immediately vulnerable to competition with other national goals involving widespread land management. We have incorporated climate goals with consistent handling of Australian Indigenous estate and varying treatments for biodiversity and agriculture to demonstrate an approach to navigate the risks to achieving both the net-zero goal and sustainable use of natural capital in an uncertain land-use planning future. We have identified regions of Australia in which modelled renewable infrastructure is rendered infeasible or more costly when natural capital protection occurs without collaborative consideration of climate action. Our approach and methods are relevant globally and highlight the importance of proactively, collaboratively and regularly reconsidering the risks to the natural capital on which we not only plan our net-zero solutions but also rely on for the critical systems that sustain life and lifestyles.

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Fig. 1: Map of Australia presenting a static approach to natural capital in the ‘best-current’ case.
Fig. 2: Maps showing target VRE capacity and cost results for ‘best-current’ and ‘uncollaborative’ land-use cases by model region.
Fig. 3: Natural capital considerations in selected regions of Australia under the ‘uncollaborative’ case.
Fig. 4: Maps demonstating the use of land-use cases to inform modelling and planning approaches to solar energy project siting in Australia.
Fig. 5: Process flow of the modelling and analysis steps followed in this research with inputs from prior modelling.

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Data availability

The data to replicate analyses are provided in or linked from Github at https://github.com/acpascale/netzero_navigate.

Code availability

The code to replicate analyses is provided on Github at https://github.com/acpascale/netzero_navigate.

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Acknowledgements

We acknowledge the advice received from many individuals and groups during the Net Zero Australia (NZAu) Project, and particularly the NZAu Project’s Advisory Group as well as B. Burbidge and A. Nagar of the National Native Title Council and W. Ragg of the National Farmers Federation. This work was generously funded by a research grant from Princeton University’s Carbon Mitigation Initiative and the Supporters of the Net Zero Australia Project through various research gift agreements. These Supporters are the APA Group, Dow Chemical (Australia), the Future Energy Exports Cooperative Research Centre, the Future Fuels Cooperative Research Centre, the Minderoo Foundation and Worley. The Supporters had no involvement in study design, in the collection, analysis and interpretation of data, in the writing of this article and other project reports, and in the decision to submit this article for publication. Complete details of the Net Zero Australia Project, including its governance, can be found at www.netzeroaustralia.net.au. We are grateful for early advice given by conservation academics H. Possingham (UQ), M. Ward (Griffith) and A. Reside (UQ). We are grateful to U. Kiri (UQ), Y. Zhang (UoM) and past collaborators from Montara Mountain Energy, Princeton University, TNC and UCSB, whose inputs led to the continual evolution of the electricity transmission siting methods released in code with this paper.

Author information

Authors and Affiliations

Authors

Contributions

Conceptualization: A.C.P., J.E.M.W., D.D., C.G., S.S., R.J. and M.B. Formal analysis: A.C.P. Funding acquisition: C.G. Investigation: A.C.P. Methodology: A.C.P. and J.E.M.W. Project administration: A.C.P. and C.G. Resources: A.C.P. and S.S. Software: A.C.P. and R.J. Supervision: A.C.P., C.G. and J.E.M.W. Validation: A.C.P. Visualization: A.C.P. and D.D. Writing—original draft: A.C.P. and J.E.M.W. Writing—review and editing: A.C.P., J.E.M.W., D.D., C.G., S.S., R.J. and M.B.

Corresponding author

Correspondence to Andrew C. Pascale.

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Competing interests

J.E.M.W. is also the Australian chair of the National Coordination Committee for the nation’s Key Biodiversity Areas. The other authors declare no competing interests.

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Nature Sustainability thanks Robert Lempert, David McCollum and the other, anonymous, reviewer(s) for their contribution to the peer review of this work.

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Extended data

Extended Data Fig. 1 Net-Zero modelling framework of prior Australia focused macro-scale energy and emissions project.

Boxes shown in red indicate the primary areas of the prior study22 with which our study area interacts.

Extended Data Fig. 2 Energy and emissions results for a high electrification scenario that selects the best national clean energy resources for export.

Energy (EJ per annum) and emissions (Mt-CO2e per annum) results of prior modelling22 for a high electrification scenario that selects Australia’s best national clean energy resources for export. Results cover 2020 to 2060 and are disaggregated by domestic (left column) and export (right column) energy systems. The top row shows the primary energy supply by different energy sources. The middle row shows the final energy consumed by different energy vectors. The bottom row shows the resulting net GHG emissions going to net-zero.

Extended Data Fig. 3 Cumulative capital (2020 AU$) results for a high electrification scenario that selects the best national clean energy resources for export.

Cumulative capital (2020 AU$) results of prior modelling52 for a high electrification scenario that selects the best national clean energy resources for export. Results in panels cover 2020 to 2060 and are for the clean electricity sector (left panel), and industrial, hydrogen and other clean fuel sectors (right panel).

Extended Data Fig. 4 Energy system capacity results (GW) for a high electrification scenario that selects the best national clean energy resources for export.

Australian energy system capacity (GW) results of prior modelling22 of a high electrification scenario that selects Australia’s best national clean energy resources for export. The left panel shows the VRE, firm electricity generation and storage, and energy conversion plant capacities from 2020 to 2060. The right panel shows the regional distribution of installed capacity of large-scale solar PV and wind in 2030 and 2060.

Extended Data Fig. 5 Solar PV, wind and transmission infrastructure siting in 2060 for a high electrification scenario that selects the best national clean energy resources for export.

Renewable energy and electricity transmission siting results of prior modelling44 for a high electrification scenario that selects Australia’s best national clean energy resources for export. The map shows notional siting in 2060.

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Pascale, A.C., Watson, J.E.M., Davis, D. et al. Negotiating risks to natural capital in net-zero transitions. Nat Sustain 8, 619–628 (2025). https://doi.org/10.1038/s41893-025-01576-y

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