The journey toward industrial decarbonisation is accelerating across Australasia, and Net Zero Industrial Precincts (NZIPs) are emerging as one of the most practical models to achieve this. The concept, explored in a recent Climateworks Centre webinar, focuses on clusters of industrial businesses that share access to renewable energy, green supply chains and coordinated investment, transforming how industries cut emissions while supporting local economies.
A Flexible, Place-Based Approach
Unlike traditional one-size-fits-all models, NZIPs adopt a flexible, place-based approach. This means that every region’s path to net zero reflects its unique industries, governance and community needs. From Indonesia to Vietnam and Australia, the examples shared highlight how localisation and collaboration are key to success.
Lessons from Across the Region
In Indonesia, the government has identified five priority precincts after assessing more than 30,000 industrial sites. Each represents a different sector, from steel and cement to nickel and fertiliser. These precincts also showcase how spatial clustering can drive economies of scale in clean energy. “The NZIP approach is one of the most practical vehicles to operationalise a just transition,” said Eggy Giwangkara, Climateworks’ Country Lead for Indonesia. “It protects local livelihoods, supports inclusive governance, and ensures communities are part of the industrial transformation.”
In Vietnam, NZIPs are being explored in Ho Chi Minh City, a manufacturing hub that produces over a quarter of the nation’s GDP. With most factories still reliant on fossil fuel–based grid power, local renewable energy initiatives such as rooftop solar and direct power purchase agreements (DPPAs) are vital. “Climate action isn’t just about reducing emissions,” explained Benoît Nguyen, Policy Manager at Climateworks. “It’s about strengthening competitiveness, attracting foreign investment, and building resilience.”
Australia’s Opportunity in Gladstone
In Gladstone, Queensland, NZIPs are being tested as a model for coordinated decarbonisation across heavy industries such as aluminium, cement, and chemicals. Hugh Sheehan, Program Impact Manager, noted that Gladstone could become a “flagship for Australia’s low-carbon exports” if it leverages its renewable resources, skilled workforce and port infrastructure.
The consensus across all three countries is clear: decarbonisation is not a technological challenge, but a coordination challenge. By aligning infrastructure, policy and investment through place-based NZIPs, regions like Gladstone can lead Australia’s transition to a cleaner, more competitive industrial future.
Implications for the Fleet Industry
For the fleet industry, the NZIP model offers important lessons and opportunities. As transport and logistics are integral to industrial supply chains, fleets can play a key role in reducing precinct-wide emissions through the adoption of zero-emission vehicles, shared charging infrastructure, and renewable energy integration.
By embedding fleet decarbonisation into precinct planning, the industry can accelerate its own transition while enhancing sustainability of the broader industry.
