Boosted Confidence: Australia's Climate Policy Gains Investor Support

Mar 25, 2024 01:25 PM ET
  • Investors with A$35 trillion in assets show growing confidence in Australia's climate policy, prioritizing decarbonization plans and emissions targets for 2035. Labor's push away from coal gains support despite challenges in renewable energy roll-out.

Investors with a combined A$35 trillion in assets are showing increased confidence in Australia's climate policy, with only 40% citing policy and regulatory uncertainty as a key barrier to investment, down from about 70% in 2021. The Investor Group on Climate Change's survey extract revealed that national decarbonization plans and the announcement of a 2035 emissions target are top priorities for investors this year.

The Labor government's efforts to accelerate the transition away from coal-fired power generation have received a boost from the survey results, despite warnings from Oxford Economics about the slow roll-out of renewable energy. Investors are particularly interested in financing renewable energy projects and technologies where Australia has a comparative advantage, such as critical minerals and green hydrogen, while nuclear energy remains the least appealing option.

Are investors in Australia's solar industry more confident in climate policy?

  • Investors in Australia's solar industry are showing increased confidence in the country's climate policy
  • Only 40% of investors cite policy and regulatory uncertainty as a key barrier to investment, down from about 70% in 2021
  • The Investor Group on Climate Change's survey extract revealed that national decarbonization plans and the announcement of a 2035 emissions target are top priorities for investors this year
  • The Labor government's efforts to accelerate the transition away from coal-fired power generation have received a boost from the survey results
  • Despite warnings from Oxford Economics about the slow roll-out of renewable energy, investors are particularly interested in financing renewable energy projects and technologies where Australia has a comparative advantage
  • Critical minerals and green hydrogen are areas of interest for investors in the solar industry, while nuclear energy remains the least appealing option.
Source:
bloomberg.com

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