The Australian Federal Government will introduce a Sovereign Green Bond program – enabling investors to back public projects driving Australia’s net zero transformation and boosting the scale and credibility of Australia’s green finance market.
The government said the Sovereign Green Bonds program will attract more green capital to Australia, by increasing transparency around climate outcomes and the scale of green investments available.
The program will be managed by the Australian Office of Financial Management and is slated to begin in mid‑2024 following the development of a Green Bonds Framework and engagement with investors.
The Albanese Government held its second Investor Roundtable in Brisbane late last week, focussing on investment opportunities for Australia in the net zero transformation, action needed to support the growth of sustainable finance in Australia and opportunities to unlock savings for consumers through better financing energy performance upgrades.
The Australian Securities and Investments Commission will also receive an additional $4.3 million to crack down on the practice of greenwashing – where an organisation provides false or misleading information or claims in regard to the environmental impact of its activities or investments.
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Roundtable participants included some of the nation’s largest investors, representing more than $2 trillion in assets under management, along with energy and climate leaders.
Treasurer Dr Jim Chalmers, minister for climate change and energy, Chris Bowen, and assistant minister for climate change and energy Jenny McAllister said in their statement:
“Australia has a huge opportunity to be a renewable energy superpower but to grab this opportunity, we must align efforts across the economy.
“The most important part of our plans to grow the economy is to encourage more investment in cleaner and cheaper energy.
“The Government and the investor community and the broader community understand that our economic prospects will be determined in large part by how we manage and maximise the energy transformation.”
