Aussie instos recalibrate US exposure for Trump era, but renewables still shine
Australian institutions have paused some investing into the United States as a result of Trump's tariffs and other policy shifts. But not in the areas you might expect, according to a JANA strategist.
Australian institutions have not lost their appetite for renewable energy investments in the United States despite the Trump administration rolling back coveted tax credits on green projects in the country.
Speaking to Capital Brief ahead of the JANA Investment Conference, the firm's general manager of investment strategy Kirsten Temple said the promise of rising electrification and the electricity consumption of AI-powered data centres outweighed the removal of generous federal tax credits during the Biden and Obama administrations that previously allowed project owners to offset losses against future incomes.
“You might have expected the Inflation Reduction Act being rolled back might mean that some [renewables] projects wouldn't be as viable. But actually, for the most part, there's an awful lot of very commercial investments you can still be making in renewables,” Temple said.
“And from what we're hearing, that sort of deployment of capital is happening. People just aren't as loud about what they're doing as they would have once been.”
