Australia’s largest superannuation funds have invested in only a fraction of the renewable energy infrastructure needed to help Australia meet its legislated 2030 climate targets, according to new analysis from Market Forces, raising questions about the sector’s role in financing the nation’s energy transition.
The Australian Government has set a target of sourcing 82 per cent of electricity from renewable energy by 2030, a goal that will require a substantial expansion of generation and storage capacity over the coming years.
According to the Australian Energy Market Operator, more than 97 gigawatts of renewable energy capacity, excluding rooftop solar, will be needed to achieve that objective.
Market Forces’ analysis found Australia’s top 30 superannuation funds have invested in only 4 per cent of the renewable energy capacity required to meet the target, despite collectively managing around $2.5 trillion in retirement savings on behalf of millions of Australians.
The report also highlighted the growing role of offshore institutional investors in Australia’s clean energy build-out, finding Canadian pension funds have invested $408 million more in local renewable energy projects since 2020 than Australia’s 30 largest super funds.
According to the research, the top 30 funds directly contributed $771 million to the $99 billion invested in Australian clean energy projects over the past five years.
That amount represents just 0.03 per cent of the assets under management held by those funds.
The findings come as superannuation funds continue to increase allocations to private markets and infrastructure assets, sectors often viewed as well-suited to long-term investors because of their ability to generate stable, inflation-linked returns over extended periods.
Only six of Australia’s top 30 super funds were identified as having direct investments in Australian renewable energy generation or battery storage projects: Aware Super, Cbus, HESTA, NGS Super, Prime Super and Rest.
Market Forces noted that 23 of the remaining 24 funds may still have indirect exposure to renewable energy projects through external asset managers or infrastructure vehicles.
However, the report said the extent of those investments could not be determined because of limited public disclosure.
Brett Morgan, report author and head of Australian campaigns at Market Forces, said the sector was failing to capitalise on an investment opportunity with significant long-term economic potential.
“Super funds are missing out on a critical opportunity to own the clean energy infrastructure that will power Australia’s economy for generations.”
Morgan said greater participation in renewable energy projects could benefit both fund members and the broader economy.
“Millions of working Australians could benefit from their retirement savings supercharging Australia’s clean energy revolution and delivering reliable, affordable renewable energy.”
The analysis found commercial lenders remain the dominant source of financing for renewable energy developments, with Australian and overseas banks providing 57 per cent of all primary finance flowing into renewable energy projects.
Their contribution substantially outweighed that of domestic superannuation funds.
While the report focused on direct project investment, it argued that super funds could play a larger role in accelerating the deployment of renewable generation and energy storage as Australia works towards its 2030 target.
Morgan said stronger commitments from funds would help provide greater accountability to members and investors.
“Australian super funds need to set ambitious targets for increasing investments in Australian renewable energy projects, and report to members on progress,” he said.
He also called on funds that publicly support global climate objectives to take a more active role in addressing policy barriers to investment.
“Any super fund which supports the Paris Agreement’s climate goals must significantly ramp up its policy advocacy efforts to remove barriers to scaling investments in clean energy.”
