Thermal coal is facing further decline as an energy source in Australia, with several superannuation companies announcing their withdrawal of support for investments in firms generating 10% or more of their income from thermal coal production. This shift reflects growing concern among clients about industries exacerbating climate change, prompting commendable action. Australian super funds manage assets worth A$3.7 trillion.
QSuper has blacklisted companies earning over 10% of their revenue from thermal coal mining, placing coal alongside other controversial industries like tobacco and munitions. Some superannuation funds still support fossil fuels, prioritizing potential returns for members despite declining investments in clean energy companies. Australia’s top 30 super funds have over A$39 billion invested in global fossil fuel companies, earning them the label “Climate Wreckers Index.”
Market Forces’ Brett Morgan notes a surge in investments in climate-wrecking industries, urging super funds to take immediate climate action. Carbon Tracker and other think tanks have long warned about stranded assets in the fossil fuel industry, applauding QSuper’s decision.
The Australian government’s recent budget excludes new funding for fossil fuels, emphasizing a future built on cleaner foundations. The Climate Council advocates for investments in clean industries, signaling a transition away from fossil fuels. However, bipartisan support remains uncertain, with some advocating for nuclear energy amid debates about climate change solutions.
While gas peakers remain essential during periods of low solar energy, big battery projects are gaining traction in Australia’s energy landscape. Mainstream financiers are entering the big battery market, recognizing the commercial viability of batteries even without government support. This maturation reflects a shift towards renewable energy supported by grid-scale batteries, although complete displacement of gas may take time.