Industry superannuation fund, HESTA has called on the Government to set a 2050 net zero emission reduction target to encourage large-scale investment to invest in a low-carbon future.
In a submission to the Government’s Technology Investment Roadmap discussion paper, HESTA said without a clear policy global investors were unwilling to invest in Australia unless they managed climate change risk.
HESTA chief executive, Debby Blakey, said: “We are at a critical juncture – the time to choose and commit to a low-carbon economy is now. We don’t want to see a carbon-led recovery that locks in long-term emissions and increases the risk of assets becoming stranded.
“Climate change represents a financial risk and leading global investors are already putting in place strategies to drive down the carbon in their portfolios and invest more in opportunities arising from the need to transition the world economy.
“In Australia alone we have an incredible opportunity to attract not only global investment but to draw on the almost $3 trillion pool of superannuation savings to power a green-led recovery from COVID-19. But there is growing global consensus from investors and business leaders about the urgent need to set long-term emission reduction targets.”
Blakey said the right policy settings would see significant appetite to invest more in renewable infrastructure in Australia.
HESTA also recommended:
- Recognising a limited role for gas in the transition;
- Removing barriers to long-term investment; and
- Enabling innovative investment partnerships and structures to boost clean tech investment.