How Combet could supercharge the Future Fund's role in the net zero economy
Greg Combet's appointment as Future Fund chair has sparked speculation about the sovereign wealth manager's future direction. With a few mandate tweaks, it could play a more hands-on role in the net zero transition.
Greg Combet’s ascension to incoming chair of the Future Fund is already generating plenty of discussion around the sovereign wealth manager’s role in investing in Australia’s green economic transition, even though he won’t take the reins until July.
Combet pointed out in his National Press Club address last week that he is not yet in a position to influence the fund’s strategic direction, and must follow the government-prescribed investment mandate. It has not stopped many from speculating as to what might change under his leadership given he is the outgoing chair of the Net Zero Economy Agency and a former climate change minister.
“They’ve gone from having a climate luddite to a climate evangelist in the chair — so you would expect the fund to have a more significant role and invest more in that area," said Tim Buckley, director of think tank Climate Energy Finance.
The Future Fund is already a significant investor in clean energy technologies underpinning the economic transition, via its investments in listed equities, private equity and infrastructure — including a 40% stake in wind developer Tilt Renewables.
