Australian and international investors worth hundreds of billions of dollars have called on the Federal Government to recognise the importance of Australia's Renewable Energy Target (RET) to the investments that they have made, and highlighted the sovereign risk that would be created if the policy was changed.
Some of the largest investment firms in the world have provided submissions to the review of the Renewable Energy Target, expressing their support for the RET. These firms make investments right around the world across many sectors of the economy and are very sensitive to sovereign risk – as would occur if the RET was to be reduced.
Clean Energy Council Acting Chief Executive Kane Thornton said these investors were clearly concerned about the risk of government moving the goal posts after an investment had been made in good faith, based on a scheme which has had long-standing bipartisan support and was explicitly legislated.
"If the RET was slashed, clearly the investments already made would be damaged and these investors would think twice about investing again in Australia, particularly given the appetite for renewable energy investment in other countries," he said.
"More than 99 per cent of the 24,000 submissions to the review of the policy called for it to be maintained or increased.
"Investors, the public and the industry want to see the target left alone to do its job and get on with delivering some $15 billion in investment and tens of thousands of jobs across the country – as well as ensuring that the Prime Minister's promise that Australia is again open for business is matched by his actions."
Investors that have provided submissions to the Renewable Energy Target review include ADK Capital from the United States, Norway's DNB Asset Management, Italy's Kairos Investment Management, Environmental Investment Services Asia Limited, and IFM Investors and Intelligent Investor Funds Pty Ltd from Australia.
