1、 Disclosures&Disclaimer This report must be read with the disclosures and the analyst certifications in the Disclosure appendix,and with the Disclaimer,which forms part of it.Issuer of report:HSBC Bank Australia Limited View HSBC Global Research at:https:/ Listen to our insightsFind out moreHSBCGlob

2、al InvestmentResearchPodcasts After a slow start,the local energy transition has accelerated,but net zero by 2050 still requires massive investment Fiscal support is underpinning a large infrastructure pipeline,but a high cost base and capacity constraints are challenges The USs shift in climate pol

3、icy could open an opportunity for Australia to attract foreign investment and private activity The energy transition is a key growth opportunity Australia had a late start to its energy transition.A large resources commodity base,carbon-intensive local energy production,and divisive politics hampere

4、d progress.However,following the 2022 Federal election and the subsequent enshrinement of emissions goals into law,the transition has picked up pace.That said,challenges remain.Since 2022,Australia has had two emissions targets,in 2030 and 2050,respectively.The economy now appears broadly on track t

5、o meet its 2030 target(DCCEEW,2024),although this is not a done deal and requires ongoing renewables expansion.Recent progress in the transition reflects increases in wind,large scale solar,rooftop solar and hydro electricity generation,as older coal power stations are nearing their end of life,and

6、the economics shift in favour of renewables.It also reflects record-high clean energy investment in 2024,supported by large government funding at the Federal and state level.Similarly,there is burgeoning adoption of EVs as costs have come down,and new vehicle fuel efficiency standards were finally i