Dec 10, 2011 - 12:00am
Perhaps the most important aspect is the response of the investment chain in delivering low carbon solutions. It is this investment chain that defines the behaviour of investee businesses and that controls the movement of capital between asset classes such as equities, fixed income, infrastructure, private equity, property and hedge funds. It is the investment processes, cultures and decisions that determine whether money is invested in low carbon or high emitting assets. It is also the investment system that either feeds or strangles companies of their oxygen-like capital depending on their long term prospects.
This submission outlines The Climate Institute’s views on how the Clean Energy Finance Corporation can help facilitate the financing of Australia’s transition to a low-carbon economy.