Unwise to rely on tech to combat climate change: Pengana



Australia “lacks credibility” by relying on technology to combat climate change as many of these technologies are not yet commercially-viable, according to Pengana.
Speaking to Money Management, Adam Myers, executive director and investment specialist for Pengana’s WHEB Sustainable Impact fund, said there was no single factor that people should be focused on and the breadth of the challenge was “staggering”.
Prime Minister Scott Morrison’s climate action plan, released this week, stated Australia’s target to be net zero by 2050 ahead of the United Nations Climate Change conference (COP26) next month.
Myers said: “That commitment is just a ticket to the party, that is the minimum we can do and everyone else is making more ambitious targets because it will be necessary. We need to do it by 2035 and have concrete plans in place as soon as possible”.
Much of Morrison’s plan focused on technology that was not yet available or commercially viable such as green steel and aluminium, low emission cement production, carbon capture and soil carbon and hydrogen, a move Myers said was unwise.
“For example, fugitive coal bed emissions, which are the gases that escape even before the coal is burnt, are a heavy pollutant. So, the Government needs to come up with a way to capture that carbon and the technology for that is in its infancy, it is not viable yet.
“You lack credibility if you rely only on what’s on the horizon.”
There was much existing technology which was viable, he said, including solar panels, insulation and wind turbines but greater incentives were needed to encourage their use on a large-scale basis.
“There are some service providers which have had an economic tailwind for some time but now they have a sovereign guarantee. We have so many examples of existing technologies that are more efficient and are making a difference. But we need more of it faster and with greater incentives,” he said.
Recommended for you
The merger with L1 Capital will “inject new life” into Platinum, Morningstar believes, but is unlikely to boost Platinum’s declining funds under management.
More than half of the top 20 most popular shares bought by advised investors during the first half of 2025 were ETFs, according to AUSIEX data.
At least two-thirds of ETF flows are understood to be driven by intermediaries, according to Global X, as net flows into Australian ETFs spike 97 per cent in the first half of 2025.
Inflows for the first half of 2025 for GQG Partners stand at US$8 billion, but the firm has flagged fund underperformance could be a headwind for future flows.