Antinuclear

Australia’s politicians hold back investment in renewable energy

“Australia has adopted a posture of being a follower rather than a leader,”

Australia’s `Depressing’ Clean Energy Policies Deter Investors – Bloomberg, by : James Paton // Aug 18, 2010 , The Arkx Clean Energy Fund’s managers are Australians who don’t have a dollar invested in Australia, a stance that’s unlikely to change after the Aug. 21 election.

“We want to invest in Australia, but you cannot invest in a country that doesn’t have regulatory clarity and, worse, where the policy direction is changing every six to 12 months,” said Tim Buckley, manager of the fund in Sydney.

Investors are shunning Australian renewable energy stocks, unsure of government policy and whether it will start emissions trading. An Australian index of 78 clean energy stocks, from wind farm developer Infigen Energy Ltd. to geothermal power company Geodynamics Ltd., dropped 31 percent in the year that ended July 30 as the benchmark S&P/ASX 200 Index rose 6 percent.

Australia lacks the “vision” needed to stimulate the renewable energy industry, said John O’Brien, who compiles the ACT Australian Cleantech Index…….“It’s all a bit depressing in Australia,” O’Brien said.

The ruling Labor Party leader Julia Gillard plans to delay an emissions trading system until after 2012 if re-elected and to set up a citizens’ group of “ordinary Australians” to help decide on a course of action to reduce greenhouse gases.

‘Absolute Crap’

Gillard’s opponent, Liberal-National coalition leader Tony Abbott, in October said the notion that human-induced climate change was scientifically proven is “absolute crap.” He also opposes carbon trading, saying it would damage the economy…….

The A$6 million Arkx Clean Energy Fund gained 15 percent in the 12-months through July, with almost a quarter of its assets in China, the fastest-growing major economy…….

Following Not Leading

“Australia has adopted a posture of being a follower rather than a leader,” said Michael Walsh, executive director of Hunter Hall Investment Management. whose Sydney-based firm oversees A$1.8 billion, including its Hunter Hall Global Deep Green Fund, which has climbed 2.2 percent in the past year.

“Both major political parties will wait until we see further developments in other major economies such as the U.S. before passing legislation that would signal a carbon price.”

Australia’s `Depressing’ Clean Energy Policies Deter Investors – Bloomberg

August 18, 2010 - Posted by Christina Macpherson | AUSTRALIA - NATIONAL, energy, politics | Australia, energy, renewable