The problem for Australia, she says, remains achieving the scale necessary to become a renewables superpower.
While the growth rate in investment has accelerated, the level of investment is still small.
Partly, this has reflected Australia’s slow start to the energy transition. While renewables investment is expected to continue to increase sharply, it is unlikely to meaningfully impact the macro-economic outlook until it reaches much higher levels.
Peak bodies in Australia agree.
According to the Clean Energy Council, Australia is deploying new large-scale generation – wind and solar farms – “more slowly than needed to reach the 82 per cent target for renewable energy on the National Electricity Market”.
For Michael Willoughby, global head of metals, mining and transition materials at HSBC, those companies that can engage successfully with global capital markets will be best placed to benefit from a move to electrification.
With a Western capital market that has a lower appetite for risk, customers and governments in emerging markets are stealing a march on their counterparts in developed countries.
Co-operation, he says, will be critical to gaining a foothold in the most lucrative global markets to emerge since the pandemic.