Headline policy reform has not translated into improved investment conditions for renewables in Australia, a new survey has found, with almost 75 per cent of asset owners reporting no progress in removing barriers – and 20 per cent saying investment conditions had worsened.
For its latest State of Net Zero report, the Investor Group on Climate Change (IGCC) surveyed 55 institutional investors who manage a combined $3.5 trillion in assets on behalf of Australians, including some of the nation’s biggest superannuation funds.
A separate report published by Market Forces earlier this week found that Australia’s 30 largest super funds directly contributed $771 million of the $99 billion invested in Australian clean energy projects since 2020, roughly 0.03 per cent of the $2.5 trillion managed by those funds.
The IGCC report, published on Wednesday, provides some insight into why this might be, after its latest survey revealed institutional investors remain “largely downbeat” about conditions in Australia for investing in solar, wind, battery storage and other climate-focused solutions.
The primary barrier, says the IGCC, is a shortage of climate and clean energy investment opportunities with appropriate risk-return profiles, cited by 74 per cent of respondents, the highest level recorded in the survey’s nine-year history.
