In its submission to the Technology Investment Roadmap, HESTA has called on the government to encourage large-scale investment in a “green recovery” by setting an emissions target of net zero by 2050 and creating a plan for a clear transition to a low-carbon economy.
“While we want to invest more here, for every $1 we have invested in Australian renewables, we have $3 committed to equivalent assets overseas,” said HESTA CEO Debby Blakey. “These assets are in countries that provide stable, predictable policy settings, which have given us the confidence to make long-term investments.”
Ms Blakey believes that a lack of policy certainty could transfer too much risk to members due to the potential for a “disorderly, rushed transition” and that the government faces the prospect of losing out on trillions in green capital.
“We are at a critical juncture – the time to choose and commit to a low-carbon economy is now,” Ms Blakey said. “We don’t want to see a carbon-led recovery that locks in long-term emissions and increases the risk of assets becoming stranded.”
HESTA also called on the government to ditch coal, saying it will play a limited role in the transition, and warned of the dangers of sovereign risk as countries and companies become increasingly sceptical of Australia’s ability to deliver on its commitments under the Paris Agreements.
“As global pressure increases for more ambitious action on climate, Australia may face greater complexity in managing international and trade relations if it is seen to be slow transitioning its economy,” HESTA said in its submission. “More broadly, global investors are stepping up efforts to manage climate risk across their portfolios and [carbon-intensive] economies and industries will face increasing scrutiny.”
