In the Australian city of Melbourne, a new initiative is bringing together hundreds of people from across the city’s business, academic, and government sectors to tackle the climate crisis.
The Melbourne Climate Network has quickly gained traction, with events regularly attracting standing-room-only crowds. What began as a City of Melbourne initiative is now a member-governed effort tackling a range of challenges, from climate financing to the retrofitting of commercial buildings.
In addition to fostering collaboration, the network is profiling over 100 local “solution providers” across diverse sectors like carbon markets, mobility, and energy storage, helping these companies gain visibility and new business opportunities. The appetite for collaboration is clear, and Melbourne’s experience offers valuable lessons for cities around the world.
Inspiration from Copenhagen
Melbourne drew inspiration from Copenhagen-based State of Green, which has become a global model for sustainability.
With 27% of its workforce in green jobs, Copenhagen has one of the highest shares of green jobs in OECD regions. By bringing together businesses, public authorities, and academia, State of Green has positioned Denmark as a leader in green innovation. This vision of climate action working alongside economic development struck a chord with Melbourne.
So it’s fitting that this year, the OECD Local Development Forum was held in Greater Copenhagen, where the topic of “Green Hubs” was a focal point. I shared Melbourne’s experience with the Melbourne Climate Network, alongside speakers from Denmark, Sweden, and Finland.
Climate action and economic growth
It’s increasingly clear that climate action and economic development are not opposing forces. In fact, when I recently surveyed the biggest emergent concepts in local economic development, many of the biggest concepts have revolved around clean energy transitions, sustainable urban growth, and the shift toward a circular economy.
Cities that engage with these concepts have an enormous opportunity to reinvent themselves as hubs for green innovation. The Douvrin region in France is taking advantage of the boom in electric mobility to build several factories, launch training initiatives, and position the region as a leader in the automotive sector.
What’s more, climate jobs offer tremendous potential to boost a city’s economic profile. These are high-productivity jobs that not only enhance the city’s reputation but also add significant value by attracting investment and skilled talent.
Early investment in climate action also gives regions the chance to gain a long-term competitive advantage by being first movers in a growing field. By positioning Melbourne as a leader in this space, we are creating an economic growth story that is deeply intertwined with our efforts to combat climate change.
The power of networks
Both Melbourne and Copenhagen’s experiences highlight the value of networks. These platforms create opportunities for people to come together, exchange ideas, and build relationships. The Melbourne Climate Network has already sparked discussions around new collaborations in climate finance, commercial office retrofits, and decarbonisation of sporting venues and competitions.
For example, the network brought together sporting codes, sporting venues and climate tech startups to explore the shared goal of achieving zero emissions in sport by delivering economic returns to local businesses. This led to a commitment of stakeholder to continue to work together to address these issues.
Similarly, the network has hosted roundtable discussions with the finance sector to explore how it is evolving to meet the urgent demands of climate change. It revealed a range of innovative new approaches to funding climate solutions for maximum impact, better financial returns and that fall within an appropriate risk profile. Participants have agreed that further discussions are required to understand and overcome constraints and investment in policy that can accelerate the transition to a sustainable economy.
Networks allow stakeholders to share best practices, pool resources, and collaborate. Wen people with different perspectives come together, it sparks innovation that pushes progress further.
Climate tech: Local context is key
Technology that mitigates and adapts to the impact of climate change is known as climate tech. This differs somewhat from other tech sectors due to its reliance on local policies and the unique needs of local customers. What works in one city may not be effective in another due to variations in regulation, geography, or environmental challenges.
This is where city governments play a critical role. By providing a supportive policy environment, with opportunities to pilot new approaches locally, cities like Melbourne can create the conditions for climate tech to thrive. The Melbourne Climate Network has become an essential link between innovators and policymakers, helping to build an ecosystem that supports climate-focused solutions.
Inclusive growth for a sustainable future
It’s not enough to focus solely on tech investment. Cities must also emphasise inclusion, ensuring that the economic benefits of climate action are shared widely. Women and low- and medium-skilled workers are underrepresented in green jobs across OECD regions. And green jobs are often created in different locations from where traditional jobs are disappearing, which can make certain regions more vulnerable to economic change.
The clean-energy transition will require a skilled workforce – research indicates that in Australia, effective climate action will add over 250,000 jobs to the Australian economy.
Cities therefore have a responsibility to invest in education and training programs that equip workers for the thousands of jobs emerging in sectors such as renewable energy, green building, and sustainable transport. Improving inclusivity in the green workforce across regions and underrepresented groups serves to build and retain workers at a large scale, as well as to support efforts to achieve a just transition.
In Melbourne, inclusion is a central part of the Climate Network’s mission. By working with training providers and educational institutions, the network is building pathways into climate tech jobs for people from diverse backgrounds. Climate action should benefit everyone.
Lessons for other cities
The Melbourne Climate Network is still in its early stages, but it’s already making an impact. As cities worldwide grapple with the urgent need for climate action, the lessons from Melbourne and Copenhagen offer a roadmap for achieving sustainable growth while addressing climate challenges. By combining economic development with climate solutions, cities can build a greener, more resilient future.
Find out more at Melbourne Climate Network.
Andrew Wear has played a lead role supporting Melbourne's economic response to the COVID-19 pandemic, and led development and delivery of the city’s Economic Development Strategy and International Engagement Framework. Over the past two years, he established the Melbourne Climate Network, an industry-led cluster leading economic growth in Melbourne’s climate sector. Andrew is also an author who is passionate about searching the world for policy solutions that work. His books include "Solved! How other countries have cracked the world’s biggest problems and we can too" and "Recovery. How we can create a better, brighter future after a crisis"