may consist of related business , service providers , academia and specialised training institutions .
Cluster collaboration can strengthen a region ’ s competitiveness by influencing policy and advocating for better infrastructure and workforce training , assisting in the growth and protection of an industry . Clusterbased economic development provides opportunities for agglomeration . This enables greater productivity across three areas : sharing facilities , infrastructure , and suppliers ; matching workers productively through deep labour markets ; and , learning through knowledge-intensive environments where ideas and innovation are exchanged . ( Ryan Donahue , 2018 )
While there are sound economic advantages for clusters , they come with some significant challenges and risks . In 2005 , the Malaysian government invested $ 150 million in a biotechnology complex in a major bid to strengthen the country ’ s knowledge economy . However , four years later , the project folded due to the lack of local talent coupled with the inability to attract major pharmaceutical companies . The site has been renamed “ Valley of the BioGhosts ” by locals .
Additionally , the inherent reliance on anchor institutions to drive clusters which inevitably result in a regional economic downturn if the anchor was to cease operations or relocate . Despite these identified challenges , the establishment of a zerocarbon cluster in Melbourne is designed to create further industry diversification and forge deeper connections between industry and academia .
The zero-carbon cluster builds on a history of successful clusters including the BioMelbourne Network . Established in February 2001 , the cluster was designed to boost the Victorian Biotechnology industry and successfully secured a three year establishment grant from the State Government in late 2002 . The funding launched the BioMelbourne Network as an independent industry-led membership organisation and in 2022 , the network serviced 215 member organisations and almost 4,200 members .
CITY OF MELBOURNE ’ S ZERO- CARBON CLUSTER The City of Melbourne ’ s Council Plan 2021-2025 commits to achieving net zero emissions by 2040 . The organisation recognises that workforce and industry development is a critical step for the sector and is working with businesses and universities to become the employment and geographical centre of a resilient zerocarbon economy .
This important work is in its early stages , led by the development of a Zero-Carbon Industry and Jobs Cluster . Work has begun on connecting multiple entities from academia , government , private organisations , investors , entrepreneurs and startups . The cluster is facilitated by the City of Melbourne with the aim of becoming an industry-led cluster within its first couple of years of operation . The cluster ’ s purpose is to drive zero-carbon jobs and economic growth for the City of Melbourne . Early work includes the development of a work plan , the establishment of jobs targets and an online communication platform will be developed to showcase local innovation and businesses .
In late 2022 , the City of Melbourne delivered the Zero-Carbon Jobs Summit which highlighted the commitment to reduce greenhouse gas emissions and the opportunity to boost the local labour market . Local research highlights that Melbourne is well placed to grow this sector given the city ’ s key assets in : economic diversity ; access to talent ; liveability ; strong knowledge-based industries ; and robust linkages between the university , business and startup sectors .
The Zero-Carbon Industry and Jobs Cluster is designed to become an engine for economic growth through multistakeholder collaboration and a magnet that attracts talent , capital , researchers and companies . Success will be measured by the establishment of a strong , collaborative zero-carbon network with focal points designed to showcase Melbourne ’ s innovation , entrepreneurship and further opportunities within the industry .
CITY OF MELBOURNE ’ S COMMITMENT TO NET ZERO The City of Melbourne is committed to meeting net zero targets and continue to be a global leader in climate action and sustainability . The delivery of the Power Melbourne project provides a network of coordinated neighbourhood-scale batteries to deliver more renewable energy into the grid . Work is also underway to develop a Zero-Carbon Buildings Plan aimed to reduce emissions from commercial buildings , which currently make up more than 60 per cent of emissions in Melbourne . ( City of Melbourne , 2023 )
Additionally , the City of Melbourne has :
• been certified carbon neutral for our operations every year since 2012
• cut emissions from council operations by 53 per cent between 2013 and 2019
• purchased 100 per cent renewable energy through the Melbourne Renewable Energy Project
• switched major events such as Melbourne Fashion Week and Melbourne Music Week to be certified carbon neutral
• planted 3000 trees a year to grow our urban forest , with over 22,000 trees planted since 2012
• invested $ 40 million in stormwater harvesting and water sensitive design , capturing and reusing around 180,000 kilolitres of water per year
• invested $ 17.1 million of Clean Energy Finance Corporation funds in energy efficiency and renewable energy , including 2244 solar panels installed and 11,816 street lights
• increased biodiversity with 16,000 m2 of new understorey vegetation planted in Melbourne since 2018 , providing habitat for our wildlife
• greened the city and increased permeability by over 3500 m2 through park expansion and streetscapes projects
• accelerated waste avoidance and resource recovery through centralised garbage and recycling hubs across the city .
The establishment of the zero-carbon cluster is based on sound economic development principles including industry identification ; business retention and acceleration of new business ; and , the establishment of partnerships in industry , academia and government . The City of Melbourne is committed to facilitating the development of an industry-led zero-carbon cluster in order to capitalise on and further develop workforce opportunities for the city .
ABOUT THE AUTHOR
ALISON MCKENZIE Alison McKenzie MBA BBus ACEcD works as a Senior Policy Officer ( Economic Development ) with the City of Melbourne . Alison is supporting the establishment of a Zero-
Carbon Industry and Jobs
Cluster that will prioritise the creation of local knowledge economy jobs in the clean energy , climate adaptation and related fields and support innovation through universities , small business and startups that deliver positive social and environmental benefits .
ECONOMIC DEVELOPMENT JOURNAL VOL 16 NO 1 2023 29