23 November 2023
Statement attributable to HESTA CEO Debby Blakey:
Today’s announcement by the Federal Government opens the door to investors like HESTA to play a more significant role in Australia’s energy transition.
Superannuation is an incredible national advantage for Australia that can help power the domestic transition to a low-carbon future.
Commitments to additional clean energy generation through expanding the existing Capacity Investment Scheme (CIS) will support the decarbonisation of the grid and achievement of the Federal Government’s ambitious 82 per cent renewable energy target by 2030.
Additionally, in important news for HESTA members, the ‘supercharged’ CIS aims to be deflationary so that wholesale energy market volatility during the transition is not passed on to consumers.
As an early investor in renewables and clean technologies, we’ve seen first-hand the barriers investors face in deploying long-term capital domestically into this space. We welcome this announcement, which we believe will help address challenges around the capacity of investors to generate competitive returns for members at scale.
HESTA’s scale and expertise, with $74 billion FUM, can support the required investment pipeline and, in turn, help deliver strong returns for members, all while assisting in accelerating the transition to a more sustainable future.
HESTA is one of the largest superannuation funds dedicated to Australia’s health and community services sector. An industry fund that’s run only to benefit members, HESTA now has more than one million members (around 80% of whom are women) and currently manages approximately $74 billion* in assets invested around the world.
*Information is current as at the date of issue.