The Albanese Labor Government’s signature Net Zero fund is pumping millions into opaque Indigenous welfare programs, while the majority of announced energy projects remain uncontracted and 9 mystery projects collapse, explosive new documents reveal.
In a confidential brief from the Department of Climate Change, Energy, the Environment and Water, obtained by the Opposition under Freedom of Information laws, it is noted that $894.8 million in “benefits for First Nation communities”, including “revenue sharing agreements,” will be delivered by proponents awarded funding under the Capacity Investment Scheme (CIS). By contrast, the brief notes that only $123.5 million will be delivered for “local employment”.
Projects under the CIS must first apply for government underwriting through a tender process before proceeding through to formal negotiations to secure a Capacity Investment Scheme Agreement (CISA).
According to the secret brief, project proponents are “obligated” to publish their “social license requirements” within 20 days after their CISAs are finalised. The Department’s website does not list which projects have secured CISAs, nor which projects have published their social license plans.
The Government has consistently refused to reveal how much the CIS has cost taxpayers at a project and program-wide level.
In addition, according to a returned Senate Estimates Question on Notice, of the 94 announced CIS projects, just 35 have been contracted as at 15 June 2026.
The confidential brief notes that, “The Government has not previously disclosed the cessation of CISA negotiations with 9 projects,” and that public commentary on their collapse should be treated with “caution.”
As of 2 February 2026, contracted projects represented just 7.0 GW of capacity. The objective of the CIS is to achieve 40 GW of new renewable generation and clean dispatchable capacity by 2030.
Only a single project under the CIS has been delivered to date, a small solar farm in Victoria.
Shadow Minister for Energy and Emissions Reduction Dan Tehan said the Capacity Investment Scheme was failing.
“The Albanese Labor Government’s green slush fund hasn’t delivered the promised $275 off household energy bills, but it has secured windfall cash flows for Indigenous groups. Only Chris Bowen could design such a scheme,” Mr Tehan said.
“The vast majority of Labor’s renewable projects are in limbo land: announced but not contracted because they simply don’t stack up.
“Chris Bowen won’t even reveal what the headline figure is for his failing Capacity Investment Scheme.
“For those projects that are underway, millions are being pumped into Indigenous welfare programs while regional communities continue to get smashed by Labor’s botched Net Zero transition.
“Labor’s Capacity Investment Scheme needs a transparency overhaul. I’m calling on Chris Bowen to tell us how much overall the scheme is costing, which projects have fallen over, and to table every social license plan in the Parliament.
“Under our plan, the Coalition will axe Labor’s Net Zero agenda, scrap their carbon taxes and unlock the critical resources underneath our feet.”
ENDS
Media contact: Phil Connole M | 0417 063 605