Carl Schwartz, the RBA’s acting head of domestic markets, said in a statement on financial markets and climate change that “From its origin in 2014, the Australian green bond market has grown ubiquitous and remains a modest share of the overall market.”
Further, Schwartz also said that “Australian financial markets have taken some steps to help facilitate flows of capital to sustainable investment, although the financing task ahead looms large.”
“Improving data and transparency around climate risks and sustainability will support efforts in financial markets to align investment with climate goals for the net zero path ahead,” he added.
Further, Australia’s reliance on coal and fossil fuels, both at home and for export, has resulted in it becoming the developed country’s highest carbon emitter per capita globally. However, by a single estimate, the vastly heated continent is capable of generating 5,000 EJ of green energy, citing more than 8x the current global demand.
“Green bond issuances in the first half of 2023 have already exceeded the previous year’s record of A$10 billion ($6.6 billion), contemplating solid interest from issuers and investors both,” Schwartz said.
Additionally, green loans are another “attractive prospect” for assisting the transition to net zero, Schwartz added.
Volumes have climbed in the green preservation markets, hitting a record of US$1.4 billion in the previous year.
Schwartz pointed to multiple activities being undertaken by the government and regulators to help improve data transparency, including developing a classification, promoting awareness of regulatory expectations, and conducting surveillance to prevent “green washing” among others.
“We continue to increase our understanding of the implications of climate change for the Australian economy and financial system, via internal analysis and external engagement,” Schwartz said.
“Also, we are committed to improving the environmental performance of our own operations.”
In the end, Schwartz also stated that the RBA is exploring what sustainability and climate-related financial disclosures it can provide, beginning with operational emissions transmission.
- Published By Team Australia News