Is it Australia’s renewable future now set for a boost?
The post ASX renewable shares in focus amid Australia’s 2050 net zero pledge appeared first on The Motley Fool Australia. –
Investors might be turning their eyes once again to ASX-listed renewable shares on Monday. The ‘green’ grouping of investments is topical after the Australian National party agreed on a pivotal climate deal.
It has been a week in the making of back and forth negotiations, but a deal appears to have been sealed for a net-zero emissions target by 2050.
However, with the Glasgow COP26 climate summit approaching, there are a few extra conditions for Australia’s green ambitions.
Bringing ASX renewable shares into the spotlight
Cutting carbon with conditions
Following a few weeks of strength in renewable and green energy alternative shares on the ASX, yesterday’s historic net-zero agreement by the Australian Government highlights the growing trend towards emission reduction. However, the coalition has a few conditions on its newly set goal.
Deputy Prime Minister Barnaby Joyce relayed that the Nationals have partially come to the party on net-zero targets. This is mostly in an endeavour to stay “inside the tent” as Joyce phrased it, to ensure its voice is heard in future decisions.
Although, there were some conditions imposed by the National party made in the process of compromising. This includes concessions in the form of a regional economic package. While no specific dollar amounts have been divulged, it calls for skills and job creation programs for regional industries including manufacturing, forestry, fishing, and farming.
Additionally, it is believed the party has called for protections for farmers and miners to sustain operations during the shift. As part of this, changes to the Environment Protection and Biodiversity Conservation Act have been called upon.
Concerns were shared by National party members for the implications to farmers over any further amendments to land rights. Speaking on this topic, Minister for Agriculture, drought, and energy management, David Littleproud stated:
If you look back to the last two elections, the Labor Party has campaigned on vegetation management laws that will again take away property rights without looking at these pragmatic ways of how do you manage the landscape, not just in sequestering carbon but actually getting better buyer diversity outcomes, better environmental outcomes that our farmers are doing every day.
The official agreement is set to be voted on in Cabinet today ahead of the Glasgow climate summit.
Nuclear mentioned but not backed
While not technically considered renewable, nuclear has recently been a popular point of discussion for alternative energy.
Reportedly, a handful of National party members had hoped for nuclear power to be included in the net-zero deal. Though, this was scratched — with Littleproud citing it would be ‘politically unrealistic’. This comes at a time when ASX-listed uranium companies have been surging in value.
Littleproud said, “Nuclear is something the National Party obviously stands firmly behind as a party room, but we understand you’ve got to educate before you legislate, and the electorate isn’t necessarily there with us at the moment.”
Finally, it may not be ASX renewable shares in the spotlight today. Investors will be watching closely to see how the market responds to coal producers and other scrutinised energy resources.
The post ASX renewable shares in focus amid Australia’s 2050 net zero pledge appeared first on The Motley Fool Australia.
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Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.