New research shows investor backing of First Nations participation in clean energy projects offers mutual benefit for investors and Indigenous groups while reducing project risk, cost and delay.

The market-leading report Investor Benefits of First Nations participation in clean energy projects by EY and the First Nations Clean Energy Network highlighted Indigenous people, communities and groups were increasingly looking to co-design, lead and partner or own clean energy systems.

Launched on Thursday to an investor/industry audience at EY's Sydney office, the report was produced from domestic and international case studies and interviews with project developers and First Nations groups in Australia that have partnered on projects,

Valuing First Nations land, sea and water was essential to Australia's social and economic success. Modelling by Net Zero Australia estimates 43 per cent of all clean energy infrastructure required to get Australia to net zero emissions by 2060 will be sited in regional and remote areas where First Nations groups and communities have rights, interests and aspirations.

Even outside these areas, First Nations groups were rights-holders and an integral stakeholder, with the potential to play a significant role in clean energy projects.

Report findings highlighted significant investor benefits, including increased fast-tracking of projects, access to pools of capital, offtaker preferencing and secondary market premium valuation, and a decrease in a project's risk profile and time taken to progress them through development.

For First Nations stakeholders, significant benefits include engagement and enabling of free, prior and informed consent (FPIC), co-design and faster access to land and sea country, recognition of rights and interests, the local workforce and First Nations-businesses prioritised, and socially responsible and sustainable projects providing a demonstrable long-term future benefit.

The report found harnessing the cultural knowledge, experience and political impact of First Nations groups, and incentivising success of the project, Indigenous participation and partnership would assist project developers to realise a magnitude of benefits.

Launch speakers included Karrina Nolan, chair of the First Nations Clean Energy Network, EY Australia partner Cara Graham and, Professor Robynne Quiggin, Pro-Vice Chancellor, who said "compliance remained a critical matter for us".

"Incorporating First Nations peoples, rights and protocols enables not just mutual economic and social benefits, but fairness and equity in Australia's clean energy transition," she said.

"Investors have at their disposal a plethora of tools and guidance enabling world-class excellence in First Nations engagement, consent, participation and collaboration towards real outcomes not yet seen in this county - First Nations equity, partnership and ownership of energy projects.

"Their implementation can ameliorate current and future risks for all of us."

Ms Nolan said the renewables transition would be the biggest energy system restructure in our lifetime, and a significant opportunity for Indigenous economic development.

"When large-scale projects are genuinely designed with our communities through early engagement, projects are better sited with consideration of sacred places and impacts on country," she said.

"Working together can mean approvals are smoother, which can mean a more stable investment environment for investors, proponents and communities.

"Our consent and participation is critical, and from an economic perspective, it means good agreements, sound projects with equity stakes and a range of other outcomes, and people genuinely benefiting from them."

Clean energy projects on Country now amount to more than 20, including 10 utility-scale clean energy project partnerships with First Nations equity, equating to less than 1 per cent of clean energy projects in Australia, according to the Clean Energy Council.

"There's policy initiatives at a state and territory level, like the Federal Government's Capacity Investment Scheme incentivising investors to meet agreed outcomes, including First Nations benefits and also equity participation in current and future tenders," Ms Nolan said.

"This is about not just jobs and business opportunities, but ownership and genuine participation of our people, bringing mutual benefits for investors and communities.

"We're seeing industry genuinely wanting to move towards arrangements where Traditional Owners and rights-holders' consent are given information early and upfront and our communities can genuinely participate... Financiers are also moving towards that principle in how they make financing decisions."

Ms Nolan said the government was bringing in public money, but private investment was required to transition at scale.

"A good example of a majority First Nations owned and led venture is Yindjibarndi Aboriginal Corporation's partnership with ACEN Australia," Ms Nolan said.

"They've got the right ingredients, including strong land tenure and 25-50 per cent First Nations equity on all projects.

"They've been fast-tracked by the WA government through approvals. They've attracted significant capital. They've got an offtake agreement with Rio Tinto. And they've got a really good history of good governance and negotiating good agreements."

Other First Nations clean energy equity agreements were being developed regardless of tenure, and still offered strong benefit arrangements for communities.

"If investors earmark projects that are designed around what First Nations people need and want and aspire to, and enable First Nations ownership and benefit-sharing, they'll get better outcomes," Ms Nolan said.

"It unlocks mutual opportunities for economic development and project success."

The full report is available online.