Super-powering the energy transition in Australia: A policy blueprint to facilitate superannuation investment
This policy blueprint advocates for a shift to renewable energy, proposing over A$40 billion annual investment. It highlights superannuation funds as potential long-term capital sources for the transition, addressing barriers and recommending clear policies to achieve ambitious sustainability goals across critical sectors for a more sustainable future.
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OVERVIEW
This policy blueprint outlines how Australia can become a renewable energy superpower and achieve net zero, calling for significant investment totalling over A$40 billion a year. Superannuation funds have the potential to provide long-term capital for the energy transition. This report highlights the strong comparative advantages available to Australia and identifies barriers to investment and opportunities across critical sectors, recommending clear policies to achieve ambitious and long-term goals for a more sustainable future.
Australia’s electricity system requires critical infrastructure investment in transmission, distribution, dispatchable storage, and renewable energy generation. The report highlights how superannuation funds, with appropriate investment opportunities and policies, could meaningfully accelerate the energy transition and attract the necessary capital. Recommendations include delivering new transmission lines, accelerating investment in batteries, and ensuring electricity networks’ fair compensation, while each sector’s policy settings can help achieve the necessary outcomes.
The report recommends supporting and developing a local sustainable aviation fuel industry and removing regulatory barriers to investment in kerbside electric vehicle charging infrastructure. Driving the uptake of electric vehicles through continued consumer incentives and legislated nationwide fuel efficiency standards will enable Australia to reduce transportation emissions. This will entail ensuring supply chains are efficient, reducing public transportation’s carbon footprint and investing in research and development whilst supporting the growth of emerging, high-risk net-zero technologies.
Forward-looking policy action and coordination across the economy would reduce institutional investment risks and help build a pipeline of growth for emerging net-zero industries. The report recommends critical and comprehensive sector pathways in consultation with investors, publicly funded research and development, coordinated national approaches to increase the supply of essential labour force skills, and local content promotion in clean energy supply chains.
The focus is on the transition to net-zero, as increasing global carbon emissions pose significant environmental challenges. Policy and investment decisions must appropriately address these issues. ESG issues include carbon-intensive industries, environmental emissions, and carbon offset programmes. The report calls for well-coordinated policy action and long-term investments targeting sustainability to help Australia’s long-term financial well-being and the environment.
In conclusion, this report offers well-structured, comprehensive, and evidence-based recommendations on how Australia can achieve its net-zero goals and develop a robust and sustainable economy with opportunities for significant investment in the renewable energy sector. Superannuation funds, with the right pipeline of investment opportunities and policy settings, could provide long-term investment to enable a successful energy transition. The blueprint highlights clear recommendations and areas for policy development, coordination and significant investment across critical sectors in line with ESG goals.