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|Making the transition happen: investment policy for a net zero emissions economy||2.18 MB|
As the long-term custodians of trillions of dollars in retirement funds, investors have a fiduciary duty to deliver long-term returns for their beneficiaries. Unless climate change is addressed in an orderly and just way, the long-term retirement savings of millions of Australians are under threat.
Australia has the potential to be a prosperous and vibrant economy in a net zero world. The country has all the potential ingredients to attract investment, across the economy, to achieve net zero emissions by 2050. There are export opportunities, which will be driven by increasing demand for existing and new products, including green steel and aluminium, green hydrogen and many critical raw materials.
While the transition to net zero emissions offers an enormous opportunity to Australia, it also presents significant risk. Australia’s economy is relatively emissions intensive and has higher carbon exposures than other major markets. In addition, a failure to implement strategies for a just transition with measurable outcomes would also erode public and investor confidence in national climate policy directions.
This document articulates the public policy priorities that investors seek so they can deploy capital into the opportunities and solutions to climate change. It is based on extensive input from IGCC’s membership, industry peak bodies and a wider set of stakeholders.
These policy recommendations address climate change at a systemic level. They address the opportunities and risks associated with the transition to net zero emissions and the physical risks associated with climate change itself.