Major global investor groups are calling on Australia to improve its climate policies and attract more green investment.
Australia was ranked alongside Argentina, India, Indonesia, Mexico, Russia and Saudi Arabia as one of the least attractive countries for green investment in the G20 Countries’ Climate Policy Report Card.
Released by the Asian Investor Group on Climate Change (AIGCC), Ceres and the Investor Group on Climate Change (IGCC), the report card analysed the progress of G20 countries towards five ‘priority actions’ previously released as part of the Global Investor Statement to Governments on the Climate Crisis, including stronger 2030 emissions targets, a commitment to net zero and mandatory climate risk disclosure.
AIGCC and IGCC CEO Rebecca Mikula-Wright said that investors understood that climate risk is investment risk.
“Investors want to seize the enormous investment opportunities that will be created in the transition to net zero,” said Ms Mikula-Wright.
“Across Asia, Australia and New Zealand, we are urging governments to step up and commit to clear and strong climate policies that will unlock the capital needed to transition to a net zero economy.”
The report found that less than 2 per cent of Australia’s spending on the economic recovery from the COVID-19 pandemic was on green initiatives. This compares to Turkey with 100 per cent and Canada with 74.5 per cent.
The United Kingdom and European Union were found to be the most attractive green investment destinations.
Australia is also among only seven G20 countries to have not yet made a commitment to net zero. G20 countries make up 80 per cent of global greenhouse gas emissions.
“Ambitious climate policies are critical market signals for investors around the world,” said Ceres CEO and president Mindy Lubber.
“With the right policy signals for robust economic transition pathways, investors will make large and necessary investments now. Our government leaders must do better to put the right policy settings in place. Those that do will benefit the most.”
