Advertisement

Aussie super funds back UK clean energy

Australian super funds will pump around $20 billion into UK clean energy projects.

Australian super funds will pump around $20 billion into UK clean energy projects. Photo: Getty

A major global institutional investment manager owned by Australian superannuation funds plans to pump almost $20 billion into clean energy and infrastructure projects in the United Kingdom.

IFM Investors had already earmarked almost $6 billion towards UK-based infrastructure, with Monday’s announcement an extension of the agreement.

Billions will be invested in key projects by 2027 under the new memorandum of understanding brokered between IFM Investors and the UK government.

UK high commissioner to Australia Vicki Treadell said private sector support was needed to boost investment in clean energy technology such as offshore wind to hit emissions reductions targets.

“We want to attract investment into that, government can’t do it on its own,” she told AAP.

The use of superannuation would ensure good medium to long term returns, she said.

“No one’s looking to make a quick buck. What they want is steady, secure, stable investment opportunities,” she said. 

“Australian super funds, in particular, have been longstanding investors into the UK, so they know from their experience that those returns are realised at the rates and value that they are looking for.”

IFM Investors chief executive David Neal said these sorts of partnerships were necessary to unlock superannuation funds for the low carbon transition. 

“Our presence in the UK continues to grow and we look forward to working closely with the government to drive investment into large-scale infrastructure and energy transition projects across equity and debt funding,” he said. 

“Australia’s ‘super funds’ system can be a trusted long-term partner with the United Kingdom.”

The Biden administration’s massive spending on low-carbon technology via the Inflation Reduction Act has triggered an international race to attract finance, workers, and technology manufacturing for the transition.

–AAP

Advertisement
Stay informed, daily
A FREE subscription to The New Daily arrives every morning and evening.
The New Daily is a trusted source of national news and information and is provided free for all Australians. Read our editorial charter.
Copyright © 2024 The New Daily.
All rights reserved.