Understanding Australian Infrastructure Carbon Reduction Initiative 2 Understanding Australian Infrastructure Carbon Red | Page 13

Coming up later in 2019 are our 2nd Indonesia GIIO and inaugural LatAm GIIO report. Follow
our Twitter and LinkedIn for details.
Acknowledgements and Thank You
Production of the Green Infrastructure Investment Opportunities Australia 2019 and the Green Finance
State of the Market Australia 2019 reports has been jointly sponsored by ANZ, Commonwealth Bank of
Australia, NAB and Westpac
In developing both 2019 reports, the Climate Bonds consulted with report sponsors ANZ, Commonwealth
Bank of Australia, NAB and Westpac. Government, industry and financial sector bodies were also
consulted.
We would also like to thank IFM Investors, CEFC, Cbus, HESTA, the Green Building Council of Australia, the
Principles for Responsible Investment, GRESB and Responsible Investment Association of Australasia for
their assistance.
Australian Launch events in Sydney and Melbourne kindly hosted and supported by Ashurst Lawyers.
4. Green infrastructure: Opportunity & Growth
Introduction Green infrastructure presents a huge investment opportunity across the world, with an
estimated USD100tn worth of climate/compatible infrastructure required globally by 2030 in order to
meet Paris Agreement emissions reduction targets. The effects of climate change and the risks associated
with a greater than 2°C rise in global temperatures by the end of the century are significant: rising sea
levels, increased frequency and severity of weather events, droughts, wildfires, loss of biodiversity and
changes in agricultural patterns and yields. Investment in low carbon solutions will be essential for
meeting global emissions reduction pathways under the Paris Climate Change Agreement. Over the past
few years, there has been an increasing demand from institutional investors, particularly from OECD
nations, for investment opportunities that address environmental challenges and support sustainable
development.
Institutional investors and banks have over USD120tn assets under management that can potentially be
used in part to support infrastructure investment and upgrades. The growing level of interest from
investors in both environmental and social projects has resulted in the development and growth of
innovative financial products. The global green bond market in particular has grown rapidly, with issuance
in 2018 surpassing USD165bn. However, green finance needs to scale up much further to achieve global
climate targets and infrastructure needs. This report builds on the inaugural Green Infrastructure
Investment Opportunities Australia and Zealand (GIIO) report released in August 2018. It provides
updated content specifically for Australia to help meet the growing demand for green & ESG investment
opportunities, including green bonds, as well as to support the country’s transition to a low carbon
economy. It aims to facilitate greater engagement between project owners, governments and institutional
investors. A similar report for New Zealand has been produced separately. The report is intended for a
wide range of stakeholders in Australia, including domestic superannuation funds and asset managers and
their global counterparts, potential issuers, infrastructure owners and developers, as well as relevant state
and federal ministries including Finance, Planning, Energy, Transport and Environment.
5. Aussie air, seaports vow to cut 200,000 tons of carbon
emissions by 2030