Australian companies are bracing for a new wave of investment in the UK to capitalize on a boom in renewable energy and infrastructure projects, according to a senior National Australia Bank executive.
John McClusky, head of the UK branch of National Australia Bank, told City AM in an interview that the UK was ripe for investment from Australian funds seeking to fuel the transition to net zero.
“The UK currently remains very attractive for investment in infrastructure, renewable energy and property, and there are many opportunities for Australian investors in private markets to deploy capital,” he said. .
“The stable regulatory environment combined with the UK’s step-by-step approach to energy transition also makes this market particularly attractive.”
He added that the appetite for Australian funds wanting to invest in the UK “will only continue to grow”.
Australia has been seen as lagging behind other developed countries in climate action and renewable energy, and investors below are now increasingly looking to tap into a richer pool of environmental assets in outside of Australia, McClusky said.
“ESG is now part of the fabric, it will only get bigger. So if investors can’t find those assets in Australia, they’ll support projects elsewhere. »
His comments come after a group of nine Australian companies pledged to inject £28.5billion into the UK economy in March, which ministers said would spur a “green industrial revolution”.
Financial giant Macquarie Group was part of the group and has committed £12billion of capital by 2030 to infrastructure projects across the UK, including offshore wind in Lincolnshire and the North from Scotland, gigabit broadband in rural England and hydrogen hubs in Southampton and Orkney.
Investment firm IFM, which has pledged to provide £3bn of investment in the UK over the next five years, said overseas investors would be more willing to inject capital into the UK if the government assumed a higher level of risk and provided more control over equity for Long-Term Support.