Australia needs an ambitious 75% emissions reduction target by 2035, a clear price on carbon, and to remove all fossil fuel subsidies by 2025 in order to unlock the investment needed to reach net zero by 2050, according to a new report.
The Investor Group on Climate Change represents investors in Australia and New Zealand who are focused on the effect of the climate crisis on the financial value of investments.
Among its members are institutional investors with funds under management worth more than $3tn.
The IGCC chief executive, Rebecca Mikula Wright, said the report underlined the fact that institutional investors had the capital to finance a clean energy economy.
Sector by sector emission reduction goals based on advice from the Climate Change Authority are also recommended in the report as the best way to guide policy and investment to transition to net zero by 2050.
Investors are also calling for a mandatory climate risk disclosure regime consistent with international best practice which would require corporate reporting of emissions, including scope three emissions, phased in by 2025 and capturing ASX 300-listed companies, large financial institutions and companies with annual revenues of at least $100m.
In order to manage climate adaptation and resilience, the report also recommends a standing advisory group be formed with government and the private sector to develop opportunities to co-fund resilience and adaptation investment.
These would be particularly important for key fossil fuel production regions such as the Upper Hunter, Latrobe Valley and Bowen Basin given their immediate exposure to transition risks, with planning for the transition needed immediately.
