Carbon tax debate driving Aussie investors away
Uncertainty around the Government’s proposed carbon tax might be responsible for many Australians turning their green investment dollars towards offshore markets and away from energy projects in Australia.
Luxembourg-based private equity firm, Polaris Energy, reported it had received an increasing number of enquiries from Australians over the past nine months regarding investing in the renewable market in Europe.
Polaris Energy’s strategic adviser, Samuel Wilson, said it appeared that Australians who are interested in investing in renewable energy seek sustainable investments both from an environmental and market perspective.
“And despite any pending agreement on carbon taxation the uncertainty won’t stop there,” Wilson said.
“There will still be debate with regards too commitment to renewable energy in the Australian market, with strong political resistance, resistance on tariffs, and consistent uncertainty at the domestic rebate level – all of which has been driving investors our way,” he said.
The European Union had agreed to binding targets to increase the share of renewable energy in 2007, with Italy introducing ‘feed-in-tariffs’ for solar, which is guaranteed for 20 years.
From this, Wilson said, Italy became the world’s second-biggest solar market after Germany.
“This provides a great investment opportunity because the tariff rate is locked in for 20 years; so, there is a clear message from the Italian government to the market around its commitment,” he said.
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