Private capital, super to fund green transformation: Combet

The agency Combet will chair also has an advisory board with 10 members, including prominent economist Ross Garnaut, the chief executive of Rio Tinto Australia Kellie Parker, and ACTU president Michele O’Neil.

Combet signalled he would be working with energy-intensive businesses as they grapple with the challenge of cutting their carbon emissions. He gave the example of the aluminium sector, which will require heavy investment to ensure reliable access to renewable energy, at a price that still allows operators to remain competitive.

“The aluminum industry is the largest user of electricity in the country. We want to retain the industry and ensure that it remains internationally competitive, and retain the jobs that it provides and the wealth generation, and it needs to be decarbonised over a period of time. So, investment is going to be required for that,” Combet said.

Combet said Australia had far more renewable energy resources at its disposal compared to many other countries, which gave it a major economic opportunity.

“If you think about it, so much of Australia’s 20th century economic development relied upon coal-fired power. Our 21st century economic development will rely upon renewables,” he said.

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On the more immediate outlook for the economy, Combet said that like many people, he shared concerns about the risk of recession. He backed the independent setting of interest rates but also highlighted the cumulative impact of 12 rises in rates on households.

“I get a sense that the last rise is going to bite. Obviously, it’s on the back of a succession of rate rises, but I think things will get tight,” he said.

Combet noted that New Zealand had slipped into recession and that inflation appeared to be abating in the United States, saying it would be welcome news if rates had peaked in the US.

“You know, we certainly do have to contain inflationary pressures, but I think now … we’ve just got to watch really carefully and, and navigate the markets as carefully as possible. I’d hate to see Australia slip into recession,” he said.

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