Carbon pricing helps investors assess investment prospects for the future

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Frank Pegan is the CEO of Catholic Super, an Australian superannuation fund currently managing AU$5.21 billion. He spoke ahead of the UN Climate Leadership Summit about the value of carbon pricing for investors.


"I support a price on carbon because I believe the capital market is ready to help with the transition to a more sustainable future. If designed well, it can help governments and the capital markets transition at a lower cost."

"A carbon price on emissions is a necessary cost to stop the economic and environmental damage being distributed across generations. Capital markets have the ability to finance the transition to a low-carbon economy."

"A carbon price will enhance their ability to move from short-term considerations, thinking only about financial outcomes, to long-term sustainable economic outcomes both for the investors and citizens of the world. It will be a sound basis for the development of social and commercial infrastructure required to protect current and future generations around food, water, and energy securities."

"When used, a carbon price can work out which companies might have future emissions liabilities. By testing different pricing scenarios, we can work out which companies are good investment prospects and which are not. Importantly, it helps us decide which emerging technologies and markets are presenting positive and new investment opportunities."


Authors

Frank Pegan

CEO, Catholic Super

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