As we emerge from the aftermath of the pandemic, there is a heightened awareness of, and priority placed on addressing some of our most pressing challenges on a global scale. Most governments are making financial commitments with record levels of investment to address these, presenting innumerable opportunities.
In Australia, all eyes are on our economic recovery and despite some setbacks, there are strong indicators for a healthy bounce-back. Economic and regulatory policies are squarely focused on generating momentum and advancements in the areas that matter most such as climate change, renewable energy and infrastructure investment.
Climate change is front of mind and with governments introducing new regulations and patents to address the cost of low emission technologies such as batteries, hydrogen, smart grids, carbon capture and storage, the speed of the transition is accelerating exponentially.
Australia is well positioned to lead the transition as a renewable energy powerhouse and according to Bloomberg, global investment in the energy transition was estimated at greater than USD500B last year.
This transition however extends far beyond energy. It is the impetus driving changes to business models and organisational structures, infrastructure requirements, and the way communities are being built. For example, organisations working to re-position themselves from traditional energy companies to renewable energy companies require support in adapting their businesses to create new energy markets, while managing the associated corporate challenges and risks. Consideration of environmental, social and governance factors are now a mainstay in managing these risks and directing investment decisions.
Having worked on several transformational hydrogen projects, we’re supporting many organisations with their decarbonisation strategies to meet net zero ambitions. Our recent work with bp Australia, confirmed the production of green hydrogen and ammonia using renewable energy is technically feasible at scale in Australia. Adopting a data analytics and scenario modelling approach to identify pathways is proving invaluable to informing strategic and operational decision making along this transformational journey.
Turning to infrastructure and again it’s a buoyant market with many touting it as leading our economic recovery. According to Infrastructure Australia, public infrastructure activity will approximately double over the next three years, peaking at AUD52B in 2023. We’ve seen an uptick in transaction activity with the purchase and building of renewable infrastructure assets. Infrastructure Australia’s call for reform, to create a stronger more secure Australia prioritises community outcomes across all infrastructure sectors from telecommunications and digital, waste, water, transport and energy to social infrastructure, productivity and sustainability presenting growth opportunities for businesses and the economy at large.
It’s hard to look past the legacy of uncertainty that Covid-19 will leave behind. Many businesses are adapting business models and operations to meet behavioural driven change. Harnessing data and effectively analysing the intelligence to inform business decisions has the potential to determine success or failure. We’re working with many businesses, using methods such as adaptive planning to model and simulate scenarios to future proof operations.
While we are in a period of constant flux, effectively directing investment to address the challenges posed by climate change, renewable energy and associated infrastructure requirements will not only serve our long-term goal of creating a sustainable future for younger generations but will carve our path for a robust economic recovery.
For more information, contact:
Tomas Nohel
Regional General Manager – ANZ Advisory
Tomas.Nohel@ghd.com
+61 2 9462 4729
