To reach a resilient net-zero economy, Australia and the world will need to develop and grow a set of new technologies, businesses and industries across the economy.

Australia is making progress in the energy sector, but decarbonisation will also require new businesses and innovation in transport, agriculture, manufacturing and more.

This paper calls these new businesses and technologies ‘transition industries’. Growing those industries domestically will be most beneficial to Australia’s economy and population.

Many new businesses and projects will require capital and will need to offer an attractive investment case at appropriate financial terms and scale for institutional capital.

Australian and global institutional investors seek opportunities to deploy capital (and gain exposure) into transition industries. Currently, they are not finding a significant pipeline of attractive investment opportunities in Australia.

This paper includes a novel and valuable review of markets with thriving and investible climate industries. This research:

• identifies five jurisdictions (California, Denmark, Netherlands, South Korea and Germany) that have very successful decarbonisation innovation industries

• reviews their policy settings, approaches and market conditions

• compares the global best practice with Australian settings, and

• recommends specific policies and overall policy approaches for Australia.