Australian investors are investing in European renewable energy markets instead of domestic due to lack of stability and uncertainty at home, according to private equity firm Polaris Energy.
The Luxembourg-based company said that Australian investors were highly interested in renewable investments, but were put off by uncertainty in the Australian market so instead opted for Europe where renewable energy is more advanced.
“It seems that Australians are interested in sustainable investment, both from an environmental and market perspective,” said Samuel Wilson, Polaris Energy’s Strategic Advisor.
Wilson said Polaris had received enquiries from Australians over the past nine months about investing in Europe’s renewable market, with many of them concerned about Australia’s lack of commitment to the industry.
Green investing has become a hot topic in Australian investing with a number of super funds, such as Local Government Super, investing in overseas investment markets due to lack of viable options in Australia.
The Federal Government has also proposed to reduce the risk of investing in clean energy and technology projects, examining new ways to support investment in clean-energy projects and provide additional support for innovation in a way that is supported by unions, environmental groups and superannuation funds.
“Despite any pending agreement on carbon taxation the uncertainty won’t stop there. There will still be debate with regards to commitment to renewable energy in the Australian market, with strong political resistance, resistance on tariffs, and consistent uncertainty at the domestic rebate level. All of which has been driving investors our way,” he said.
Currently, Europe is the biggest green energy market globally due to a binding targets agreement in 2007, with Germany and Italy the largest solar markets.
Wilson believes that with the recent issues surrounding nuclear energy, demand for solar and other renewable energy resources can only go up.
