(30 April 2023 – Australia) The Australian government will launch the country’s inaugural sovereign green bond in Q2 2024 in conjunction with energy investors seeking to enhance corporate investment in the transition to net zero carbon emissions.
The instrument allows major investors such as superannuation funds and banks to finance public projects targeted at speeding up Australia’s net zero trajectory, as part of Treasurer Jim Chalmers strategy to allocate private funding for national investment priorities. The Australian Securities and Investments Commission (ASIC) will also be allocated another A$4.3 million to police greenwashing.
Green bonds are used to finance new and existing projects that offer climate change and environmental benefits.
“The bond program will attract more green capital to Australia by offering investors another way to tap into public projects geared towards the energy transition, and by boosting the scale and credibility of the nation’s green finance market. We need to give as many opportunities for people to invest as we can” Mr Chalmers commented.