Progress on transition plans putting Australia on a growth trajectory for clean energy investment and jobs

5 December 2023
Including perspectives from AustralianSuper, Aware, Cbus, HESTA and Rest from today’s roundtable with Treasurer Jim Chalmers.

Investors have come away from today’s roundtable with Treasurer Jim Chalmers confirming that Australia’s sector-by-sector transition plans, now in development, can be a key part of new investment and job creation in the country’s clean energy industries and entire economy.

Senior executives from the Investor Group on Climate Change and its members joined a roundtable meeting with Treasurer Jim Chalmers, and Climate Change and Energy Minister Chris Bowen to confirm their support for key principles in the government’s development of sector by sector transition pathways and plans.

Quotes from IGCC CEO, Rebecca Mikula-Wright

“Today’s discussion was a crucial move towards the clarity and confidence that investors need to deploy capital into Australia’s economic future and deliver the best risk adjusted returns to their beneficiaries.

“The global transition to net zero has already started, and Australia is now taking the steps to make our path clear instead of chaotic.

“To keep moving together we need to keep working together.

“The Investor Group on Climate Change will keep working with the Government, all members of Parliament, businesses, unions, farming groups and civil society to build sector plans to deliver what is required today to ensure a fair, prosperous and orderly transition to net zero emissions.”

IGCC member quotes

AustralianSuper Chief Executive, Paul Schroder

“Achieving the nation’s net zero target will take bold and decisive action from governments, industry and investors. Sector transition plans will provide investors with greater clarity on what is needed for portfolio assets to meet their net zero targets, guiding our allocation of capital to transition-enabling activity and help us to manage climate risk.

AustralianSuper is a long-term investor in the Australian economy and is committed to investing in the nation’s energy transition, while delivering on our purpose to help members achieve their best financial position in retirement.

The challenge we face is not a lack of capital, but a shortage of good quality investment opportunities. Collaboration, ambition and action across all sectors of the economy, underpinned by policy certainty, will deliver the outcomes we need to respond to this challenge and deliver better outcomes for all.”

Aware Super CEO, Deanne Stewart,

“We welcome the Commonwealth Government’s ongoing and vocal commitment to strengthening Australia’s response to climate change and creating the investment conditions that will allow us to build on our significant investment into energy transition and climate solutions.

“For Australia to meet its legislated 43% emissions reduction target by 2030, around $76 billion in extra investment in the energy transition will be needed and it’s imperative the right policy, framework and incentives are in place to attract capital. With this in mind, we see it as a significant area of opportunity for investment to deliver strong risk-adjusted returns for our 1.1 million members.”

Cbus Super Chief Investment Officer, Brett Chatfield,

“Sector pathways are an important plank in the myriad of policies required for Australia to play its part in transitioning to net zero.

“The pathways will improve the ability for investors like Cbus Super to identify and factor in the speed with which sectors will transition. That guidance is required as one part of the bigger picture of having policies and planning that support the ambition of a successful and smooth energy transition.”

HESTA CEO, Debby Blakey,

“HESTA welcomes the Federal Government’s commitment to develop sector-by-sector transition plans.

We see the plans as important to a timely, orderly and equitable transition. This is necessary to mitigate climate-related financial risks to our members.

It is HESTA’s view that the plans must support real-world decarbonisation and improve the alignment of the Australian economy with the goals of the Paris Agreement.”

Rest Chief Executive Officer, Vicki Doyle,

“As a super fund representing more than one million members aged 30 or younger, we recognise the historic opportunity to support the transition to a lower-carbon economy in line with members’ long-term financial interests.

“We believe the sector-by-sector transition plans and guiding principles announced by the Treasurer will help develop a long-term pipeline of good quality investments to support the energy transition and assist us in finding new investment opportunities today. This can only be a good thing for our members, many of whom will retire in a post-2050 world.”