Accelerating foreign investment in Australia’s energy transition
A report by 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 aims to facilitate the speedy development of energy transition infrastructure.
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Research question
Are policy, regulatory and market efforts to make Australian energy transition deals more attractive to offshore capital proving effective? If not, what might help to commit more green capital down under?
Australia has historically built its wealth-generating industries using foreign investment. Foreign Direct Investment 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. In this report we draw out the perspectives of global investors and businesses assessing thesee opportunities in the Australian market.
Approach
To ensure this report made an original, and valuable, contribution to the business debate, The Action Exchange undertook a knowledge mobilisation process to surface new insights and ideas that resonate with international investors. The paper was well received and Clayton Utz engaged The Action Exchange to reassess the findings of the report one year on with a series of energy infrastructure investor roundtables. These events have become an important client and industry engagement opportunity for the firm .
The ideas
Key insights in Net Zero Exceptionalism: Accelerating foreign investment in Australia’s energy transition include:
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.
