Submission: Future Made in Australia Bill to accelerate the net zero transition
18 July 2024
Our members have identified climate change-related damages as one of the greatest risks to their ability to deliver strong returns for their members. They have also identified climate mitigation and adaptation as among the largest investment opportunities to deliver good risk adjusted returns over coming decades.
Unlocking private capital via public financing mechanisms, as outlined in the Bill, is critical to overcome barriers outside the control of investors and will accelerate decarbonisation globally and secure economic resilience for Australia. Below is a list of recommendations to ensure the Act will achieve the Government’s economic security, community benefits and net zero outcomes.
Recommendation 1. More clarity on how Community Benefit Principles will be measured when deciding whether to allocate financing.
Recommendation 2: That regardless which body provides financing, Community Benefit Principles are required to be considered.
Recommendation 3: That all projects receiving FMIA financing have access to the coordinating front door, connecting those executing the project with relevant entities for streamlining and innovation ecosystem development.
Recommendation 4: That the sector assessments outlined under the National Interest Framework are not duplicative of work undertaken during the current sector plans consultations, and are informed by the conclusions of that work.
Recommendation 5: That no funds that are allocated on the basis pf principles under the National Interest Framework are given to projects in legacy industries such as fossil fuels.
Recommendation 6: That close alignment with the Australian sustainable finance taxonomy is embedded within the Bill.
Recommendation 7: In delivering “genuine value for money” FMIA must be careful not to exclude projects with below commercial rates of return which is where the capital stack is most vulnerable.
Recommendation 8: That adaptation and resilience is embedded within matters to be considered, so that projects receiving funds deliver economic security.
Read the full submission.