29 November 2023
Super and the Net Zero challenge
New research released today by the Association of Superannuation Funds of Australia (ASFA) highlights the key role for the superannuation sector in the collective challenge to transition the Australian economy to Net Zero emissions.
Climate change represents a global systemic risk to the earth’s natural systems and to human society. In the absence of deep, rapid cuts to global emissions, the likelihood of increasingly severe and irreversible impacts on the natural systems will only rise.
“Australia’s transition to Net Zero will require a fundamental shift in the structure of the economy – unprecedented in terms of scale and complexity and demands a significant and sustained rise in the level of capital investment – which will need to be oriented towards new low-emission assets and to transition existing high-emission assets,” said ASFA Interim Chief Executive Officer, Leeanne Turner
“The superannuation sector will be a key source of funding for required investment in the Australian economy. Total financial investments of APRA-regulated funds – which currently stands at $2.3 trillion – is projected to reach $10 trillion by 2050.”
In its research ASFA examines the broad-based buy-in and coordination necessary in Australia, and globally, for an orderly transition to a Net Zero economy.
“Shared responsibility for coordinated action extends to all of society – including the broader business community, financial institutions, non-government organisations and local community-based organisations – with Government to play a critical role in an orderly transition,” concluded Ms Turner.
Changes to policy settings will be necessary to ensure private-sector capital flows to where it will be required. In this regard, ASFA supports the Australian Government’s broad-ranging work program as reflected in its Sustainable Finance Strategy and recently announced plans for a National Capacity Investment Scheme.
For further information, please contact:
ASFA Media team: 0451 949 300
ASFA is the peak policy, research and advocacy body for Australia’s superannuation industry. It is a not-for-profit, sector-neutral, and non-party political, national organisation. ASFA’s mission is to continuously improve the superannuation system, so all Australians can enjoy a comfortable and dignified retirement.