Tuesday 16 June: New analysis reveals Australia’s top 30 superannuation funds have invested in just a fraction (4%) of the renewable energy capacity needed to meet Australia’s mandated 2030 climate goals.
The Australian Government has set a target to achieve 82% renewable electricity by 2030. Achieving this target would require more than 97 gigawatts (GW) of renewable energy capacity, excluding rooftop solar, according to the Australian Energy Market Operator.
The analysis has uncovered that Canadian pension funds have invested $408 million more in Australian renewable energy projects since 2020 than Australia’s top 30 funds.
Brett Morgan, report author and Head of Australian Campaigns, Market Forces, said:
“Super funds are missing out on a critical opportunity to own the clean energy infrastructure that will power Australia’s economy for generations.”
“Millions of working Australians could benefit from their retirement savings supercharging Australia’s clean energy revolution and delivering reliable, affordable renewable energy.”
The new research finds that since 2020, the top 30 super funds directly contributed $771 million to the $99 billion invested in Australian clean energy projects. This investment is 0.03 per cent of the $2.5 trillion in members’ retirement savings managed by these 30 funds.
Only six of Australia’s top 30 funds have direct investments in Australian renewable energy or battery storage projects: Aware Super, Cbus, HESTA, NGS Super, Prime Super and Rest.
Twenty three of the remaining 24 funds may have ‘indirect’ exposure to these projects through holdings with external asset managers and in infrastructure funds. Quantifying the extent of this investment is impossible without further disclosure.
The research shows that most (57%) of the ‘primary finance’ flowing to renewable energy projects in Australia comes from Australian and overseas commercial banks, overshadowing the contribution from Australia’s super funds.
“Australian super funds need to set ambitious targets for increasing investments in Australian renewable energy projects, and report to members on progress,” said Mr Morgan.
“Any super fund which supports the Paris Agreement’s climate goals must significantly ramp up its policy advocacy efforts to remove barriers to scaling investments in clean energy.”
For media inquiries and interviews contact:
Antony Balmain, +61-423-253-477, [email protected]
Summary of findings
| wdt_ID | wdt_created_by | wdt_created_at | wdt_last_edited_by | wdt_last_edited_at | Findings | Figure |
|---|---|---|---|---|---|---|
| 1 | Total value of renewable energy investment in Australia since 01/01/2020 | $99 billion | ||||
| 2 | Identifiable direct super fund investment value | $771 million | ||||
| 3 | Super funds’ share of total capital invested | 0.8% | ||||
| 4 | Super funds with identified direct investments in renewable energy projects | 6 of 30 | ||||
| 5 | Super funds with potential indirect investments in renewable energy projects* | 29 of 30 | ||||
| 6 | Total number of renewable energy projects invested in since 01/01/2020 | 514 | ||||
| 7 | Projects currently operating | 223 | ||||
| 8 | Projects under construction or commissioning | 60 | ||||
| 9 | Projects in development pipeline | 214 | ||||
| 10 | Total installed and planned renewable generation capacity | 169,643 MW | ||||
| 11 | Total battery and storage capacity across all projects | 165,495 MWh |
Note to editor/reporter
Market Forces analysis is based on data from RenewMap and Green Street Infrastructure. All figures based on renewable energy and battery energy storage system projects invested in since 1 January 2020. The analysis of super funds’ portfolio holdings disclosures has found that 29 out of 30 funds may have exposure to at least some of the renewable energy projects identified in our research, via external asset managers and infrastructure funds.