This move comes as the transition to renewable energy sources is not progressing as well as the government had hoped.

It is widely recognized that Australia is not on track to meet the government's commitment of generating 82% of its electricity from renewable sources by 2030.

Chalmers was straightforward in his important speech on Thursday, stating, "We know that further action is needed to achieve our goals... It's important for me to acknowledge that without more decisive actions across all levels of government, working with investors, industry, and communities, the energy transition may not align with what the country needs."

In his address titled "Energy, Economics, and this Defining Decade" at the 2023 Economic and Social Outlook Conference, Chalmers announced that he would put the work on the energy transition at the center of the reformed Productivity Commission (PC), which falls under his portfolio.

He is presenting the "Statement of Expectations" to the commission, marking the first in its quarter-century history. This statement will be aligned with the new PC head, Daniel Wood, and will be published by its commencement on November 13.

The statement "will make it clear that the country's direction towards a successful net-zero transformation will be one of the key areas of work for the refreshed and revitalized Productivity Commission," a role Chalmers aims to play more influentially.

Chalmers stated that "more practical and up-to-date advice" will complement the recommendations of bodies like the Climate Change Authority, "to ensure we unlock the economic potential presented by the move to net-zero."

Speaking on radio, Chalmers emphasized that the PC is the "brains trust of the Australian people," and it needs to play a more active role in energy transformation because it is "one of the biggest challenges and opportunities that we face."

While Chalmers has been cautious in his consultations with colleagues, and there is no known tension between him and other ministers, his more assertive leadership in directing the PC's work could potentially pose challenges for Wood. Wood had recently delivered an important speech on tax reform.

In one of her final addresses as CEO of the Grattan Institute, Wood stated that, despite all obstacles, she remains optimistic about the possibility of tax reform.

"I don't think we have much of a choice," she said. "The boiling frog platform is still boiling, and over the next decade, the gap between our spending needs and our tax system's ability to meet them without even higher taxes on labor income will stretch to the breaking point."

Wood added that tax should be part of the discussion if political goals in areas like the "green transition" are to be achieved.

It might be expected that she would want to use the PC to provide some research support for the need for tax reform. However, Chalmers has been cautious about significant tax reform, in part due to his experience working in Wayne Swan's office when a tax pressure initiative ended poorly.