Indigenous Victorians will receive profits from renewable energy projects on their traditional land, according to an ambitious government plan.

Environment Minister Lily D'Ambrosio told the Yoorrook Justice Commission that active efforts were being made to steer revenue streams to Aboriginal groups.

Counsel assisting Fiona McLeod quizzed Ms D'Ambrosio on how the plans could unfold.

"I take it from that, that the Victorian government supports benefit sharing arrangements such as revenue streams from renewable energy projects?" Ms McLeod asked on Monday.

Ms D'Ambrosio replied: "Yes, definitely".

"We are actively ... our intent is to actively establish those."

Ms McLeod went on to seek detail in how traditional owners could benefit from any potential revenue streams.

"Is it your view that First Nations people should have the authority to decide who and how resources are extracted from their land and the terms on which they do so?" she asked.

Ms D'Ambrosio said that was "a hard question to answer".

"How we achieve that is one that must be worked on," she said.

The insight came after Ms D'Ambrosio said "very little" of the billons of dollars of Victorian mining revenue royalties had been given to Indigenous groups.

The total value of gold extracted since colonisation in Victoria in today's terms is $287.4 billion.

Commissioner Travis Lovett pointed out the figure was a lot of money and asked Ms D'Ambrosio what efforts the government was making to return any portion of the wealth to Indigenous Victorians.

"It is a lot of money and very little, if any (has been done)," she said.

"Certainly (there is) no royalties that have gone to traditional owners. Royalties that are collected by the department goes directly to consolidated revenue."

Between 2010 and 2023 alone, Victoria's royalties totalled $149.4 million for gold, $885.6 million for coal and $79.5 million for sandstone and gravel.

Mr Lovett queried what plans the government had to funnel some of its mining wealth to traditional owners so they could take part in the profits.

"What would be required would be personally an acknowledgement by the state, by government, like myself, that things have to be done differently," Ms D'Ambrosio said.

"There is an opportunity that we are developing right now, which is a strategy for critical minerals."

Treaty aims to provide a path to negotiate the transfer of power and resources for First Peoples to control matters impacting their lives, the assembly said.

Yoorrook is creating an official public record on the impact of colonisation on Aboriginal people in Victoria and will recommend actions to address historical and ongoing injustices.

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