Invest
Retirees to pay the price for leadership mess: Investor council
The consequences of the Prime Minister’s decision to postpone the National Energy Guarantee will flow beyond Canberra and into retirees’ savings, a major investor group has warned.
Retirees to pay the price for leadership mess: Investor council
The consequences of the Prime Minister’s decision to postpone the National Energy Guarantee will flow beyond Canberra and into retirees’ savings, a major investor group has warned.
According to the Australian Council of Superannuation Investors (ACSI), Prime Minister Malcolm Turnbull’s last-ditch attempt to fend off a leadership crisis by indefinitely postponing the legislation of the National Energy Guarantee (NEG) was “regrettable”.
Mr Turnbull may have retained the leadership, but this morning’s 48-35 party room result suggests future instability.
To ACSI CEO Louise Davidson, the decision to shelve the NEG emissions reduction target means a continuation of the uncertainty that has “plagued Australia’s regulatory regime in energy and climate change for over a decade”.
What is the NEG?
Its aim was to provide cheaper and more reliable power while also reducing emissions and would require energy retailers, like gas, solar and wind farm managers, to agree to supply a minimum amount of energy that would always be available. Electricity sold would have an average emissions level in line with the 2015 Paris Agreement’s carbon reduction targets.
However, there were concerns the NEG would not achieve its goals and would increase energy prices.
Ms Davidson said, “Investors and listed companies have long-acknowledged the need to move to net-zero emissions in line with the Paris Agreement. A smooth transition to low-emissions energy presents a far lower risk to investments – the retirement savings of millions of Australians – than a disorderly one.”
The council described climate change as a material risk to Australian retirees’ and future retirees’ savings.
“Investors need regulatory certainty to deploy capital. This decision means further delays to much-needed investment in energy generation to lower emissions and energy prices for consumers through increased supply,” Ms Davidson said.
The Investor Group on Climate Change echoed ACSI yesterday, with CEO Emma Herd condemning the decision as having “serious repercussions for investment in the energy sector in Australia”.
“To provide the confidence necessary to bring investment back into the electricity sector, energy and climate policy must be integrated together,” she said.
The IGCC has $2 trillion assets under management, with its membership including ACSI, Australian Ethical, ANZ, AustralianSuper and BT among others.
“A lack of clarity on the emissions reduction pathway is at the heart of the investment strike in the energy sector. A NEG without emissions reduction targets will further undermine the establishment of a credible, scalable and enduring energy and climate policy framework,” Ms Herd said.
The Business Council of Australia also expressed disappointment with Mr Turnbull’s decision, noting that greater policy stability has led to cheaper wholesale prices.
“Without locking-in this overarching framework, investment uncertainty will continue to be unresolved and the national electricity market will remain unfit-for-purpose,” chief executive Jennifer Westacott said.
“Over the past decade, governments of both persuasions, federal and state, have created this mess – through failed attempts at carbon pricing, ill-conceived green schemes, a renewable energy target that forced out base-load supply, gold plating of energy infrastructure and irresponsible moratoriums on gas exploration by some states.”
Australian Industry Group agreed that to back away from the Paris Agreement would be neither easy nor sensible, and could trigger global sanctions against Australia.
Stock market
Could this bull market be losing steam?
There’s an old investment adage that bull markets never die of old age, with the current market showing signs of cracking just months after the recovery, an industry expert warns. ...Read more
Stock market
Super fund investors bid to acquire Sydney Airport
A group of super fund investors has lodged a non-binding takeover bid for Sydney Airport, valuing the company at over $22 billion. ...Read more
Stock market
10 most globally held stocks revealed
Australian investors remain bullish on electric vehicles and technology stocks, according to their long-term held positions, new research has shown. ...Read more
Stock market
How ‘gamer investors’ are pushing a new wave of social responsibility
A new generation of younger retail investors are pushing a new social movement, yielding a distributive impact on the markets, most notably through the GameStop saga, two researchers have revealed. ...Read more
Stock market
ASX tipped for record high despite inflation fears
The market is tipped to shake off fears of rising inflation, with the ASX 200 now tipped to close the year at a new record high, an economist has revealed. ...Read more
Stock market
‘Commission-free propaganda’: Warning issued for retail investors
The phrase “if you’re not paying for it, you’re the product” applies just as much to stock trading apps as it does to social media networks. ...Read more
Stock market
Is the tech sell-off creating opportunities for investors?
A tech sell-off sparked by inflation concerns has seen world markets crash. But is it creating an opportunity for investors to ‘buy the dip’? ...Read more
Stock market
Government opens arms to Wall Street
In its bid to maintain Australia’s global competitiveness, albeit its firmly shut borders, the Australian government has included a measure in its recent budget to allow foreign financial services p...Read more
Do lockdowns boost property prices? Are short-sellers levelling the playing field? Did you lodge your tax returns early?
Listen now
Will lockdowns halt the housing boom? Is the metaverse taking over? And the cons of lodging your tax returns early
Listen now
Are you being priced out of the market? Have you got the Tuesday blues? And are you ready for the upcoming super changes?
Listen now
Are property prices set to crash? Should you jump on board the fintok craze? And how to prepare for this tax time
Listen now
Stock market
Could this bull market be losing steam?
There’s an old investment adage that bull markets never die of old age, with the current market showing signs of cracking just months after the recovery, an industry expert warns. ...Read more
Stock market
Super fund investors bid to acquire Sydney Airport
A group of super fund investors has lodged a non-binding takeover bid for Sydney Airport, valuing the company at over $22 billion. ...Read more
Stock market
10 most globally held stocks revealed
Australian investors remain bullish on electric vehicles and technology stocks, according to their long-term held positions, new research has shown. ...Read more
Stock market
How ‘gamer investors’ are pushing a new wave of social responsibility
A new generation of younger retail investors are pushing a new social movement, yielding a distributive impact on the markets, most notably through the GameStop saga, two researchers have revealed. ...Read more
Stock market
ASX tipped for record high despite inflation fears
The market is tipped to shake off fears of rising inflation, with the ASX 200 now tipped to close the year at a new record high, an economist has revealed. ...Read more
Stock market
‘Commission-free propaganda’: Warning issued for retail investors
The phrase “if you’re not paying for it, you’re the product” applies just as much to stock trading apps as it does to social media networks. ...Read more
Stock market
Is the tech sell-off creating opportunities for investors?
A tech sell-off sparked by inflation concerns has seen world markets crash. But is it creating an opportunity for investors to ‘buy the dip’? ...Read more
Stock market
Government opens arms to Wall Street
In its bid to maintain Australia’s global competitiveness, albeit its firmly shut borders, the Australian government has included a measure in its recent budget to allow foreign financial services p...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
