Super heavyweights call for green energy investment reforms

Wind farm set in hilly area with beautiful sky in background (super investment)
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Australian super funds have called on the Australian Government to enact reforms that would make it easier to invest in domestic renewable energy projects, warning that without action investors would opt for more compelling overseas projects.

Australia’s transmission network, batteries and sustainable aviation fuel are three areas where simplified planning, subsidised finance and other regulatory changes could catalyse investment, according to a report released by eight major superannuation funds.

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Reforms could quickly unlock AUD$4 billion worth of investment in batteries, the report said.

“The challenge we face is not a lack of capital, but a shortage of good quality investment opportunities,” said Paul Schroder, CEO of AustralianSuper.

“Collaboration across all sectors of the economy, underpinned by policy certainty, will deliver the outcomes we need to respond to this challenge.”

Together, the eight funds manage approximately AUD$1 trillion.

The report noted that a raft of clean energy incentives announced in the US, EU, Korea and Canada had sparked global competition for capital.

IFM Investors, owned by Australian pension funds and an author of Friday’s report, signed an AUD$20 billion investment deal with the UK on Tuesday. Australian pension fund Aware Super committed AUD$10 billion.

Related article: Aware Super to invest $2 billion in renewables

“Capital will naturally be directed to regions with the most attractive policy settings for investment,” IFM Investors CEO David Neal said in the joint statement.

“This blueprint sets out a path to help ensure the growth of industry super funds is harnessed for Australia, as the transition to net zero continues to ramp up globally.”

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