Our CEO, Rebecca Mikula-Wright, will join the Treasurer’s roundtable on Tuesday, representing views of superannuation funds and institutional investors managing more than $4.6 trillion on behalf of 15 million Australians.
“Strong and credible climate targets and plans are important macroeconomic signals that can attract investment into Australian jobs growth, productivity, export opportunities, and protecting value in our communities” said Mikula-Wright.
Beyond the well-publicised benefits of the strongest possible 2035 emissions reduction target, the group will advocate for:
- Setting Australia up for success to achieve emissions reduction at least cost, including by:
- Publishing Net Zero sector plans with clear, detailed information on investment priorities,
- Streamlining and fast tracking approvals for the rollout of renewable energy infrastructure, working closely with communities to build social license and maximise benefit sharing.
- Legislating and following up the forthcoming National Adaptation Plan with funding and mechanisms to attract private capital, including by;
- Developing adaptation plans for key sectors,
- Updating the mandates and controls of all specialist investment vehicles, including the National Reconstruction Fund, Northern Australia Infrastructure Facility, and Housing Australia, to reflect physical climate risks and adaptation opportunities,
- Reviewing key regulations including town planning and land-use in the context of credible climate projections.
- Maintaining and expanding the Safeguard Mechanism beyond 2030:
- Expanding its scope to cover more of the economy by including facilities with 25,000+ tonnes of emissions (the current threshold is 100,000+ tonnes) which would capture more sources of emissions across the electricity, transport and mining sectors,
- Stronger reporting obligations around reliance on offsets, to increase pressure for on-site emissions reduction,
- Establishing a right-to-emit market, with the government using raised funds to accelerate decarbonisation in hard-to-abate sectors.
- Developing a carbon border adjustment mechanism, to level the playing field for Australian exporters and complement incentives in an improved safeguard mechanism.
- Removing fossil fuel subsidies such as the diesel fuel rebate, that distort investment signals and, particularly in the mining sector, delay investment in decarbonisation on site.
- Using COP31 as a platform to accelerate trade partnerships based around regional decarbonisation, clean energy and industry exports.
“Without genuine progress on climate, Australia’s economy could lose $6.8 trillion between now and 2050” said Mikula-Wright
“On current climate trajectories, super funds will struggle to fund Australian’s retirements, and the government will be looking at huge hits to productivity, hits to our credit rating, higher costs, and lower tax receipts.
“But Australia also has opportunities if we get this right; we’re already seeing Australian skills and resources building sustainable industry, clean energy, and the next generation of high value exports.
“So if investors, businesses and government really understand the climate risks and opportunities, the rationale for strong climate targets, plans and policies is incredibly clear.”
An earlier version of this article incorrectly said, under point 3, that the threshold for the safeguard mechanism was 100,000 megatonnes, the correct figure is 100,000 tonnes.