Accelerating foreign investment in Australia’s energy transition
Australia has historically built its wealth-generating industries using foreign investment. Foreign Direct Investment (FDI) inflows underpinned the growth of industrial capacity in coal, iron ore and natural gas. As these emissions intensive energy and industrial sectors look to go green, the country has an immediate need to mobilise foreign capital to build infrastructure at scale for its low carbon energy transition.
Net Zero Exceptionalism: Accelerating foreign investment in Australia’s energy transition, by Australian leading law firm Clayton Utz in partnership with The Action Exchange, explores the emergence of a new attitude of exceptionalism in Australian policy, regulatory and investment settings, which aim to facilitate the speedy development of energy transition infrastructure. It focuses on the perspectives of global investors and businesses assessing these opportunities in the Australian market.
The report examines whether the efforts to make Australian energy transition deals more attractive to offshore capital are proving effective, and if not, what might help to commit more green capital down under.
Key Findings:
The energy transition is a bright spot in a tough global investment environment.
Emerging net zero exceptionalism is good news for international capital.
Foreign investors face hurdles to deploying capital in Australia, but developing a strong understanding of Australia’s energy transition landscape can help.
The transition is only just beginning. Australia is ramping up financial and policy support for the transition and investors can expect a clearer path to realising returns
Stakeholder opposition to new infrastructure projects is on the rise, but streamlining approvals will put the transition on track.
The energy transition is changing public-private partnerships.
Read the full report here.
