Fossil fuel divestment poses $5trn challenge, as clean energy debate stirs Down Under
Bloomberg New Energy Finance Week in Review
Meanwhile, renewable energy is facing large political hurdles ‘Down Under’. A Bloomberg News story last week found that Australia is “frightening developers away” from renewable energy as the government is preparing to decide whether to overhaul targets.
Prime Minister Tony Abbott’s decision to take advice on the renewable energy targets from a panel led by Dick Warburton – known sceptic about the causes of global warming – has prompted at least two developers to reconsider plans for wind and solar farms. Earlier this week, the company planning a giant solar plant in Mildura pulled out of the project, citing the risk the government will rework its policy. In addition, Australia’s spending on large-scale renewable energy projects fell to AUD 58m ($54m) in H1 2014 from almost AUD 1.3bn a ($1.2bn) year earlier, according to Bloomberg New Energy Finance in Sydney.
The renewable energy target review is widely expected to recommend a significant weakening of the nation’s clean energy target, as the government works to dismantle almost all climate-change-related programmes and policies. Although it is unlikely to be able to legislate changes that reduce the target, the federal political uncertainty could hamper large-scale investment until at least the next election. Read more about Bloomberg New Energy Finance’s outlook for the industry in a presentation at the Clean Energy Week Conference in Sydney on 22 June.
