Do recent trends point to a shift towards green technology investment?
Numerous analysts have expressed their concerns regarding whether some of Australia’s biggest companies are investing sufficiently to plan for a clean energy future. According to research, about $2 trillion worth of oil and gas projects could be made redundant in a carbon-constrained future, which suggests that financial investment into fossil fuels needs to consider the risk factors.
Mark Campanale, founder of independent financial think tank Carbon Tracker Initiative, noted that the continued support of an increasingly outdated business model might well be termed the “carbon bubble”, as he said that $2 trillion worth of investments were at risk as international climate policy developed.
Vocalising a similar trend, markets economist Rob Henderson said that all of the money in the financial market is heading towards renewables, and away from older technology. Both of which suggest that financial services regulators can play a more active role in climate policy leadership.
South Australia’s Financial Sector: between state grants and state levies
Following the announcement of a new proposed state levy on five big banks, the South Australian Government says a $900,000 grant has attracted 200 new finance sector jobs to Adelaide, showcasing the state as a competitive place to do business.
Embracing the high-tech space, the grant enables Bendigo and Adelaide Bank, to partner with another firm, Tic Toc, to process online home loans at an expanded operation in the Adelaide CBD. However, notwithstanding the grant’s positivity, not everyone is sees it as sufficient to counter the state levy announcement, and the Australian Bankers Association said the proposed state levy on the big four banks and Macquarie, intended to raise about $370 million over four years, would be an “outrageous cash grab”.
A typically controversial topic, the planned state levy on big banks seems unlikely to be passed by the Upper House of State Parliament, but continues to be a topic of discussion within South Australia and other states.