Three industry heavyweights have come out in support of the Federal Government's decision to establish a carbon pollution reduction scheme.
The Investment and Financial Services Association (IFSA), Australian Institute of Superannuation Trustees (AIST) and Australian Council for Super Investors (ACSI) have backed the government scheme.
Collectively the associations represent companies and superannuation funds responsible for managing Australia's $1 trillion financial services industry.
"As institutional investors in listed and unlisted companies it is important that the long-term costs to the economy of taking action to tackle climate change are minimised," ACSI chief executive Ann Byrne said.
AIST policy and research manager Andrew Barr said a proposed emissions trading scheme would hopefully give superannuation funds greater certainty and guidance about making the right investment decisions.
"AIST recognises that left unchecked, climate change will adversely impact the Australian environment and super fund performance. Strong action from the Government on tackling climate change is essential if Australians want to retire with financial security in an environment that supports their chosen lifestyle," Barr said.
The Government's decision should position Australia's role as a regional hub for carbon trading activities, IFSA chief executive Richard Gilbert said.
"From a regional financial services centre perspective, ensuring that an Australian carbon pollution reduction and emissions scheme is able to integrate with existing and developing schemes should be seen as a key policy objective," Gilbert said.
