Clean energy investors with billions of dollars to pour into regions such as the Hunter are waiting for governments to show they are serious about transitioning away from fossil fuels as soon as possible, according to an organisation representing some of Australia's major institutional investors.
Investor Group on Climate Change members include the country's largest superannuation and retail funds, specialist investors and advisory groups.
They manage more than $35 trillion globally and $5 trillion in local assets under management.
However, the lack of energy policy stability and predictability is deterring investment that would accelerate the transition, according to Erwin Jackson, IGCC managing director of policy.
"Despite significant direct investment from Australian governments and a growing appetite from investors, there are barriers preventing greater investment in Australia's vital regions such as the Hunter," Mr Jackson, who visited the Hunter last week to discuss potential investment opportunities, said.
"A key consideration for all capital allocation is whether market settings offer stability and predictability. This is particularly important for long-term investors, which are required to generate competitive returns for their super members over multiple decades."
Mr Jackson said the "intense politics that shroud national climate policy" and lack of a bipartisan on a national plan to replace Australia's ageing coal generation fleet would result in billions of dollars worth of investment and new job opportunities flowing out of Australia.
The federal government launched its Net Zero Authority at Lake Liddell in March 2023 with the promise of applying a "laser-like focus" to the demolition of obstacles to job creation in regions such as the Hunter.
Bills establishing the Net Zero Authority passed the senate in June.
Despite its big plans, it has been criticised for a lack of on-the-ground activity in communities such as Singleton and Muswellbrook.
The state government launched its transition authority model in Muswellbrook in May.
It too has been criticised for being overly bureaucratic and lacking in useful funding.
The Hunter has already demonstrated its capacity to attract world-leading clean-tech industries such as Energy Renaissance, MGA Thermal and MCi Carbon.
Elsewhere, AGL is transforming the former Liddell Power Station site into a $1billion clean energy hub and Orica and Origin Energy are building the Hunter Hydrogen Hub on Kooragang Island.
But more investment is needed if the region is to achieve its potential as a globally significant clean energy hub.
The IGCC has urged national, state and regional transition bodies to work together to form a 'front door' for investment opportunities.
"Critically, delivering good long-term returns for the regions requires companies and governments to invest in liveable regional communities. Good long-term investments require health communities to support them," Mr Jackson said.
"Investment in sectors that determine the liveability of regional communities, including health care, aged care, education, affordable housing and quality transport infrastructure are key to attracting and retaining a vibrant workforce."
