ROOT
Australia risks squandering a $63bn opportunity if it fails to commit to net zero
ROOT
Australia risks squandering a $63bn opportunity if it fails to commit to net zero
Australian and New Zealand investors are responding to climate risk through net zero investments, but a lack of government policy and initiatives is seeing opportunities squandered and capital moved offshore, new research has revealed.
Australia risks squandering a $63bn opportunity if it fails to commit to net zero
Australian and New Zealand investors are responding to climate risk through net zero investments, but a lack of government policy and initiatives is seeing opportunities squandered and capital moved offshore, new research has revealed.
A report released by the Investor Group on Climate Change (IGCC) has revealed that 70 per cent of investors with funds under management totalling more than $3.1 trillion believe policy uncertainty is a key barrier to investing in an environmentally friendly way – up around 30 per cent on last year’s survey.
According to the IGCC, the hesitancy is due to a lack of government support, with Prime Minister Scott Morrison refusing to “sign a blank cheque” and commit to net zero by 2050.
As such, local investors are adopting a ‘wait and see’ approach when it comes to investing ethically at home, while others are simply moving their capital offshore.
“The Australian government’s policies remain predominantly focused on guiding taxpayer investment; however, what is even more important is developing a climate and energy policy framework that ensures private capital is deployed at scale in net zero and climate resilient investments,” the report found.
Without a climate and energy policy, Australia stands to lose a $63 billion opportunity, the report warned.
As such, the IGCC urged for a credible national framework to achieve net zero across the economy.
“The Australian government’s current policies are not a substitute for a coherent national climate policy framework for the entire economy,” the IGCC said.
“More credible 2030 emissions targets, a clear goal for net zero emissions by 2050, and the implementation of an investable climate-related financial disclosures regime are needed.”
Despite facing the headwinds of the government, the report highlighted an increase in environmental investing in Australia.
“Over 40 per cent of respondents have made portfolio-wide commitments to net zero emissions by 2050, up from 27 per cent in 2020,” the IGCC concluded.
RELATED ARTICLES
About the author
About the author
Earn
New Business Boom: Australia’s Top Ten Suburbs Lead Entrepreneurial Growth
Australia's entrepreneurial landscape is witnessing a remarkable transformation, with the latest data from the Lawpath New Business Index highlighting a significant surge in new business registrations ...Read more
Earn
Unlocking success: How tiny habits can make or break your career trajectory
Career plateaus rarely begin with a market shock; they start with tiny, repeated choices—avoiding change, outsourcing the hard calls, neglecting pipeline hygiene. In a market where distribution, data ...Read more
Earn
Unlock your potential by transforming hidden habits into success
Self-sabotage isn’t a character flaw — it’s an operating model failure. As pressure, complexity and AI-driven change intensify, the cost of avoidable behaviours (avoidance, over-delegation, context ...Read more
Earn
Australian labour market shows signs of strain amid global economic shifts
In the latest economic data release, Australia's labour market is exhibiting signs of strain, despite maintaining a relatively low unemployment rate. According to Krishna Bhimavarapu, APAC Economist ...Read more
Earn
Australia’s entrepreneur boom: August 2025 breaks records with over 100,000 new ABNs
Australia is witnessing an unprecedented surge in entrepreneurship, with the latest figures revealing a record-breaking number of new business registrations in August 2025. According to the newly ...Read more
Earn
Beyond the cash rate: How affordability reshaped Australia’s property playbook in 2025
Australian buyers are less fixated on interest rates and more constrained by affordability, a pivot that is quietly rewriting strategies for banks, developers and institutional investorsRead more
Earn
Australia’s rate cut revealed: What it means for property, profits and the months ahead
The RBA’s 25-basis-point cut to 3.6% extends the easing cycle and resets the calculus for households, lenders and property operators. Expect a faster spring selling season and a sharper rate war, but ...Read more
Earn
Beyond the sticker price: decoding a property’s real value in a volatile market
As prices in several Australian cities keep defying slower growth and higher rates, the question isn’t what a property costs—it’s what it’s truly worth. Value today is a stack: cash flows, replacement ...Read more
Earn
New Business Boom: Australia’s Top Ten Suburbs Lead Entrepreneurial Growth
Australia's entrepreneurial landscape is witnessing a remarkable transformation, with the latest data from the Lawpath New Business Index highlighting a significant surge in new business registrations ...Read more
Earn
Unlocking success: How tiny habits can make or break your career trajectory
Career plateaus rarely begin with a market shock; they start with tiny, repeated choices—avoiding change, outsourcing the hard calls, neglecting pipeline hygiene. In a market where distribution, data ...Read more
Earn
Unlock your potential by transforming hidden habits into success
Self-sabotage isn’t a character flaw — it’s an operating model failure. As pressure, complexity and AI-driven change intensify, the cost of avoidable behaviours (avoidance, over-delegation, context ...Read more
Earn
Australian labour market shows signs of strain amid global economic shifts
In the latest economic data release, Australia's labour market is exhibiting signs of strain, despite maintaining a relatively low unemployment rate. According to Krishna Bhimavarapu, APAC Economist ...Read more
Earn
Australia’s entrepreneur boom: August 2025 breaks records with over 100,000 new ABNs
Australia is witnessing an unprecedented surge in entrepreneurship, with the latest figures revealing a record-breaking number of new business registrations in August 2025. According to the newly ...Read more
Earn
Beyond the cash rate: How affordability reshaped Australia’s property playbook in 2025
Australian buyers are less fixated on interest rates and more constrained by affordability, a pivot that is quietly rewriting strategies for banks, developers and institutional investorsRead more
Earn
Australia’s rate cut revealed: What it means for property, profits and the months ahead
The RBA’s 25-basis-point cut to 3.6% extends the easing cycle and resets the calculus for households, lenders and property operators. Expect a faster spring selling season and a sharper rate war, but ...Read more
Earn
Beyond the sticker price: decoding a property’s real value in a volatile market
As prices in several Australian cities keep defying slower growth and higher rates, the question isn’t what a property costs—it’s what it’s truly worth. Value today is a stack: cash flows, replacement ...Read more
