Institutional investors back Green Paper

Richard Gilbert

The Federal Government’s Green Paper on carbon trading has won the broad approval of the Australian financial services industry, which accepts that the certainty of early intervention is better than a delayed approach.

The Green Paper’s thrust won the support of the three key bodies representing Australian institutional investors: the Australian Council for Superannuation Investors (ACSI), the Investment and Financial Services Association (IFSA), and the Australian Institute of Superannuation Trustees(AIST).

As well, major insurer Allianz has welcomed the Green Paper on the basis of the need to reduce the potential for the severe weather patterns and insurance claims that go hand-in-hand with global warming.

The three bodies representing institutional investors yesterday welcomed the Federal Government’s release of a Green Paper on the establishment of an Australian Carbon Pollution Reduction Scheme, arguing that early and strong action would be less costly than a delayed response.

ACSI chief executive Ann Byrne said it was important to minimise the long-term costs to the economy of taking action to tackle climate change.

“We are firmly of the view that the costs of early and strong action will be less than the costs of delayed or insufficient action and recognise that comprehensive coverage of sectors, and of greenhouse gases is desirable in order to maximise abatement opportunities and efficiencies, while also minimising the costs of the scheme,” she said.

IFSA chief executive Richard Gilbert said it was important that the design of the scheme facilitate market certainty and minimise wider costs.

“Given the central role of emissions data to the scheme, a strong monitoring, reporting and assurance regime will ensure that emissions reported under the scheme are accurate and transparent,” he said.

The AIST’s policy and research manager, Andrew Barr, said it was hoped the Government’s proposed emissions trading scheme would give super funds greater certainty and guidance about making the right investment decisions to protect asset values and long-term performance.