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Investors urge governments to go green for coronavirus recovery

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Investors urge governments to go green for coronavirus recoveryWe’re sorry, this feature is currently unavailable. We’re working to restore it. Please try again later.DismisscloseAdvertisementBy Log in, or to save articles for later.Normal text sizeLarger text sizeVery large text sizeAdvertisementMajor investors, Australian superannuation funds and the International Energy Agency are urging governments to seize the green opportunity to drive economic growth after the coronavirus pandemic and avoid the risks they see in high carbon emitting projects."Recovery plans that exacerbate climate change would expose investors and national economies to escalating financial, health and social risks in the coming years," said a statement from the Investor Agenda group - an international coalition of institutional investors and asset managers whose members hold more than US$80 trillion under management.Large-scale energy generators such as coal and gas fired power plants and their heavy duty transmission networks, as well as gas powered manufacturing facilities, are built to deliver a return on investment over decades.Investors argue international commitments to tackle climate change and reduce emissions such as the Paris Agreement create an unacceptable risk for long-term investment in emissions intensive projects.CBUS super fund board director Stephen Dunne said in the wake of the coronavirus, the business community would be wary of investing in projects exposed to the "systemic risk" of climate change. Mr Dunne is chairman of the Australian Investor Group on Climate Change which is a member of the Investor Group."Investors are increasingly pricing climate risk into their investment decisions and looking for resilient assets that will provide sustainable returns," he said.The Clean Energy Council, which represents renewable energy companies that employ more than 28,000 workers said governments had "an opportunity to transform Australia forever".In its Clean Recovery report released on Tuesday the Council said wind and solar projects totalling 30 gigawatts energy capacity, which already have development approval, would generate $50 billion in investment across the supply chain 50,000 construction jobs and 4000 permanent positions.AdvertisementThe Council also said support for large and small-scale renewables, such as rooftop panels, and an accelerated roll-out of batteries would create a "smart energy system" that could deliver flexibility and lower costs for consumers with low-emissions.This week, the International Energy Agency, an intergovernmental energy forecast adviser, highlighted opportunities in the energy sector in the wake of COVID-19. Global energy demand is forecast to fall a whopping 6 per cent this year, seven times more than during the global financial crisis.But emissions returned to previous heights around two years after the 2008 financial crisis. IEA executive director Dr Fatih Birol said the energy industry that emerged from the pandemic would be "significantly different".Dr Birol said "only renewables are holding up during the previously unheard-of slump" in global consumption of electricity, oil and gas. Clean energy "can create jobs, make economies more competitive and steer the world towards a more resilient and cleaner energy future", he said.Energy and Emissions Reduction Minister Angus Taylor has said he to aid the recovery.He has also directed the Clean Energy Finance Corporation to invest in hydrogen projects which can include gas power, and the Australian Renewable Energy Agency has a to fast track development of wind and solar powered hydrogen projects.Last week 60 companies issued a statement ahead of Germany's Petersberg Climate Dialogue including major multinationals ThyssenKrupp, Bayer, Puma and Allianz calling for the German government to "closely link economic policy measures to overcome both the climate crisis and the coronavirus crisis".Mindy Lubber, chief executive of US-based sustainability advocate group Ceres, which boasts a network of 175 institutional investors managing more than $29 trillion in assets said "policymakers and regulators have a chance to reshape a new resilient economy in fundamental ways that better protect us from system threats, like the climate emergency".Emma Herd, chief executive of the Australian Investor Group on Climate Change, said "government policy that spurs fresh private investment in clean energy … will lead to much needed jobs and economic growth"."The Australian government should be looking to integrate recovery plans with its , long-term emissions reduction strategy, grid modernisation planning and bushfire recovery to build greater resilience and reduce climate risk," Ms Herd said.Log in, or to save articles for later. is the climate and energy correspondent for The Age and The Sydney Morning Herald.Advertisement

Investors urge governments to go green for coronavirus recoveryWe’re sorry, this feature is currently unavailable. We’re working to restore it. Please try again later.DismisscloseAdvertisementBy Log in, or to save articles for later.Normal text sizeLarger text sizeVery large text sizeAdvertisementMajor investors, Australian superannuation funds and the International Energy Agency are urging governments to seize the green opportunity to drive economic growth after the coronavirus pandemic and avoid the risks they see in high carbon emitting projects."Recovery plans that exacerbate climate...

Investors urge governments to go green for coronavirus recovery

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