Keynote interview | Shemara Wikramanayake

► Adrian Dwyer, Chief Executive Officer, Infrastructure Partnerships Australia

► Shemara Wikramanayake, Managing Director and Chief Executive Officer, Macquarie Group

Adrian Dwyer (AD): When we did this a year ago, we were discussing the prospects for national recovery off the back of COVID-19. We face a much more mixed set of challenges now. Small question: how did we get here?

Shemara Wikramanayake (SW): Yes, it’s amazing that last time we spoke, that was the world. I guess then we were facing something none of us had ever dealt with, where basically we had to shut down economies to protect people’s health. I think central banks and governments did the right thing in providing fiscal and monetary stimulus to help us get through it. But what surprised us all, happily, is how quickly the health profession was able to come up with vaccines to get us now to physically being together again so quickly. We had demand already increasing on the way into the lockdown, and now we’ve opened up with fuel to the flames in terms of the huge stimulus that has driven a massive increase in demand. Then, a range of supply shocks came through. I know people have been saying central banks should have moved sooner, but I do think the supply issues were hard to anticipate in terms of China and the lockdowns there, which are hurting supply chains. The Russian invasion of Ukraine has really impacted the energy system, and, domestically, the tight labour market; it’s tight everywhere in the world, but the border closing means that we now have a much tighter supply of labour, as well.

All of these things have led us back to – and we haven’t had this for four decades – the days of double-digit inflation and interest rates. Central banks are now having to put the foot on the accelerator hard to rein in inflation and prevent a period of stagflation. So, yes, it’s amazing to think none of us would have thought even a year ago, let alone two years ago, that this would be the new environment now.

AD: I guess the obvious questions are: Can we break the back of inflation without breaking the economy? And in that

scenario, how well do you think Australia is placed to navigate those choppy waters?

SW: It takes a brave person to say they know the answer, especially given the huge amount of uncertainty we have just been through already. I think it’s looking like certainly that the US economy is proving to be incredibly strong, but the central banks all around the world are really showing conviction in terms of trying to rein in inflation and prevent stagflation. Everywhere in the world (here included), we had the 50-basis-point step

up. The view is to go hard to rein this in, even though that may mean a mild recession. Chances are that in the United States, the economy just seems so strong that if they have a recession, they should be able to land it reasonably softly with a mild recession. Europe is a different kettle of fish altogether. The energy impacts there are huge.

The United States is self-sufficient in energy, and Europe hasn’t got there, so it will potentially face a bleaker recession. Here in Australia, we’re ever the lucky country coming into this, with a pretty good economic backdrop. Our household debt balance sheet – net debt – is actually in a pretty good place as we come into this. Also, our terms of trade, two of our three largest exports are liquefied natural gas (LNG) and coal, which at the moment are going very well. The Reserve Bank has said that it thinks the impacts from rate increases could be lagging, so it might monitor for a bit. But if they do go hard, I think we probably are one of the best-positioned countries to manage a really soft landing, potentially even avoiding a recession. The landing strip is pretty narrow to achieve that. I think we’re relatively well-placed, but it would be a brave person to call that.

AD: When you talk to your clients, what is this doing to their appetite to invest more broadly, but also specifically in infrastructure?

SW: With interest rates going up, obviously discount rates are going up and for four decades we have not had to deal with this environment. That is making asset prices not just come down, but be more volatile and clients are obviously suffering in their fixed-income and equities portfolios. Having said that, there’s a lot of money still being allocated to infrastructure funds. We are out there raising and are hitting our hard caps on all of the funds we are raising. Even our peers are sitting with a lot of dry powder.

We have released papers showing that infrastructure is a pretty good asset class in this rising inflation and rising rate environment, particularly if it’s nominal rates, because it is an essential service asset class. There is a degree of protection in the revenue line, be it a utility or toll roads, as you can pass on a lot of these. Historically, it is a much more resilient asset class than other classes and we have done a lot of research on this for our investors that we’d be happy to share. So, we are still seeing appetite to invest. If anything, the challenge is finding good, investible projects. I certainly suspect others in the room are finding the same, that this is an asset class that will continue to attract investment through this cycle.

AD: We recently released some analysis on private capital opportunities in the Australian and New Zealand infrastructure pipeline. The analysis estimates that the total value of private capital opportunities of Government projects is at about $71 billion; $62 billion worth of projects and contracts are strong candidates for private capital across that and the broader pipeline. What is the house view on where the best opportunities lie for private capital?

SW: Well, thematically, there are four areas we have been talking about. First, urbanisation continues around the world in developed and developing countries, so there is a need for investment in things like transportation, infrastructure, and utilities (water, gas and electricity). Another big area is social infrastructure where there’s a need for private capital to help in investment. The Federal Government allocated A$537 billion to healthcare in the 2022–23 budget over the next four years. Hospital Public Private Partnerships represent an opportunity, with a strong pipeline of potential projects nationally, including in Victoria and Queensland. So, basic urbanisation infrastructure is one area of investment.

Then, something we have been investing a lot in is digital infrastructure. That investment has been particularly accelerated by the pandemic; everything is getting disrupted by technology. People are doing a lot more online now, not just working remotely, but studying remotely and shopping from home. So, there is a lot more investment in things like hyperscale data centres, logistics, warehousing infrastructure, fibre optic networks, towers and telecommunications.

So, urbanisation and digitisation, but also obviously climate change and the energy transition are big areas where we’re seeing a lot of capital flow in terms of infrastructure investment. Apparently, we have four or five times the penetration per capita of wind and solar here already in Australia. We don’t think we are that big, but for the size of our population compared to the United States, Europe, China and Japan, we are. Having said that, the Australian Energy Market Operator has said that if we’re going to meet the growing electricity demand here and the mix that we want, then we’re going to need a massive nine times step-up in wind and solar. So, it’s about $320 billion of investment up to the 2050 plans.

The last area that is coming up is that the geopolitical backdrop is also now becoming very different. I mean, not since the fall of the Berlin Wall in 1989, or even prior to that, have we had geopolitical factors driving the whole world. We are potentially heading back to that world. For spending in defence, the new Government has said it’ll maintain at two per cent. So, there is about $565 billion there under the national guidelines that we need in defence spending. Investment in cyber is growing at an eight per cent compound annual growth rate. Also, with the demand for critical minerals, there will be a whole lot of supply chain change and investment there for geopolitical reasons, and those are obviously things like lithium, cobalt, nickel and graphite that are used in everything (batteries, solar panels and wind turbines). That’s just four big sectors off the top of my head. Frankly, when there’s change going on in the

community, infrastructure investment is needed to support that change across a range of sectors. So, there’s no end of places where we can all be responding to support that.

AD: It’s interesting, that sovereign resilience piece. That is conspicuous because we’ve not spoken about that at any point over the last few years, so it is a pretty marked change in the last 12 years or so.

SW: It will impact a lot of what’s going on, and alliances will develop.

AD: On the government side of the pipeline, how do we ensure governments are routinely exploring and considering the opportunities of using private capital to deliver against that pipeline?

SW: This backdrop is going to drive them to do that more. I was reading about the all the measures that are going to be taken in the United Kingdom and Europe in terms of energy. They are going to have to look at subsidising retail, and maybe some of the industrial and commercial as well, in energy demand. So, fiscal debt is going to go up a lot. It was already up at crazy levels in many of the big countries around the world, but they’re going to have to rely on private capital more and more to deliver on some of these community needs for infrastructure investment. Here in Australia, we’ve had a good track record of doing that. I think the New South Wales State Infrastructure Strategy does look to basically partner with private capital already in areas like social housing, trains and electricity. At a national level, the guidelines are for any project over $100 million to consider Public Private Partnership options. In Victoria, the VicRoads Modernisation joint venture, which Macquarie is part of, is a 40-year partnership providing A$7.9 billion in upfront proceeds for the state to invest in the new Victorian Future Fund and strengthen its budget position. I think, certainly here in Australia at the federal and state levels, they’re continuing to draw private capital. Globally, we’re a big investor in the United Kingdom, and they are going to need private capital with the new Prime Minister’s approach of cutting taxes, helping the community with funding a whole lot of things – the money is going to have to come from somewhere and I think private capital has a bigger role to play.

AD: What’s your sense? Is Australia still leading the way in this space or have we got some catching up to do?

SW: Yes, and maybe we have a biased view, but we all here pioneered infrastructure as an asset class during the early 1990s recession, and the privatisations that happened, have taken it now to be a global asset class. People here get it. The big pension funds have huge allocations like the Canadians. In the United States, investors are still allocated only one or two per cent to infrastructure. When I was working there between 2004 and 2008, we used to jokingly call the United States the ‘emerging market for infrastructure’, because they still hadn’t got into either allocating or bringing private capital into investment. Frankly, it still is an emerging market for infrastructure, relative to what’s happening here. All of the asset recycling that was done here is a very smart way to sell mature assets and draw new capital into development that the Government can then take the risk on, and catalyse further investment. All of that should happen in the United States, but still isn’t, and so I certainly feel Australia continues to lead the way on recycling both existing assets and structures for drawing private capital into new assets.

AD: We’ve seen the keys handed over, and a new Federal Government sworn in and setting the pace now. What change do you see from an infrastructure perspective?

SW: Well, Prime Minister Anthony Albanese actually was the minister when Infrastructure Australia was set up, so I think we have a prime minister that really gets the value of working with the private sector on infrastructure. We’re now focusing on a whole lot of small projects happening, and I get the impression there is a focus on trying to prioritise where that focus on new projects is. I know Mike Mrdak and Nicole Lockwood were working on this prioritisation. I think that will be a very valuable thing and getting the commitment is important, and then actually getting the projects prioritised, and putting structures around and getting them done. So, so far, we are seeing good things out of the new government.

AD: One of the big things that happened very recently is the passing of the legislation on 43 per cent emissions reduction by 2030, and net zero by 2050. What practical difference does that make from where you see it?

SW: First of all, it’s fantastic to have a roadmap. It is really important for us when we invest, because we’re trying to deliver for our investors. Michael Carapiet used to call it everything from the deadly boring, right through to the barely interesting in terms of what we offer in infrastructure. But it’s got to be defensive capital, protected income-yielding assets with a degree of certainty around them – which is why people invest with lower required returns. So, having the Government set pathways is really important and the targets that they’ve set by sub-sectors is also good. Ultimately, you then have to

get to specific projects and start looking at what can be done, and how you de-risk them and the structures. That’s where we need to break this down and get things done. Now, all the states are doing things. The infrastructure electricity investment plans here in New South Wales, where they’re trying to do 12 gigawatts of renewables, have identified the renewable energy zones that are very important. Queensland is coming out with its plans. The states have taken quite a lead on this historically, but I think now bringing that down to projects is going to be an important next step.

AD: One of the themes in our discussions over the years has been Macquarie’s efforts around fossil-fuel-intensive assets and what you’ve done to reduce exposure in those, and then the transition pathways. My sense is there has been a real maturation of that argument over the past few years. How’s that trending in your own portfolios and investments, and client appetite around renewables versus other assets?

SW: One of the good things the Federal Government has done by setting the 43 per cent target is they have said that we will need gas as a transition fuel. We have been saying for ages that in energy – and in transport, agriculture and industry – we’ve got to have this orderly transition, because until we have solutions of scale, we can’t transition off what we’re doing at the moment. Some of that is exacerbated now because in energy, you’ve got to thread the needle between a trilemma of availability, cost and climate impacts. When people haven’t got access to energy, or their cost of living is becoming untenable, you can sometimes lose the mandate for that transition, so we do need to think this through.

We have said that for our own balance sheet we will get out of coal in the next couple of years. Oil and gas are a teensy portion of our balance sheet. We have about a $200-billion balance sheet, and only a couple of hundred million in these areas, but we have been very much advocating that we will need these transitioned fuels. With super profits being earned in coal, we should try to encourage that to get invested in new solutions. I would’ve thought it’s in the interest of the coal companies, as well, to be in transportation rather than railroads, and to be in energy and think about where the new sources of energy are.

So, at Macquarie we do a lot of support. All the producers in Europe are going to need huge support in meeting the gap in demand and, now, sourcing supply. So, we do a lot for them, such as risk management, hedging, financing, transportation, and storage, and we will step up to continue to do that. At the same time, we really need a massive step up in investment in solutions and that’s where we’re doing a lot of work. Along with our partners, we have invested $75 billion since 2005 and over $30 billion just in the past five years. So, I think we have 30 gigawatts under construction and in development of renewable projects, and over 15 gigawatts operating. We are passionate about energy, but also transport; we’re doing a lot of things on electric vehicles and sustainable aviation fuels. In agriculture, it’s precision technology or low-methane-emission feedstock, and in industry it’s green steel. But at the same time, we’re very mindful when you ask about gas that it’s got to be a transition fuel for Australia; we need energy independence.

AD: There’s a lot of discussion among ministers around embedded carbon, and not just the transition of the energy sector, but the carbon that’s embedded in the things that we build. What can you and the other investors in this room do to push that argument and reduce the amount of carbon that’s in the projects we build?

SW: Yes, it’s an important area to focus on. I think 39 per cent of our emissions are from industry in that way and 28 per cent of that is from embedded carbon. So, we do need to be thinking about a whole lot of things in terms of procurement standards to try to address that, and we’re doing projects with partners like BP on this. We’re building our new premises at 1 Elizabeth Street that has the highest 6 Star Green Star rating, and we are really focusing on the embedded carbon in that building. It’s costing us a bit more to deliver that, but we’re getting higher rents for it. I think people in the property sector here doing office buildings will tell you that all the tenant demand is for these sorts of buildings as we come out of COVID-19. Demand has now reduced a bit compared to supply – that’s where the focus is. So, a lot of these things that are good for the community are also smart business.

AD: Over the years, we’ve attempted to end these interviews on a nice, positive note, but we’ve also discussed a lot of challenges today. So, if you cast your mind forward, what are you most optimistic about for Australia and the infrastructure sector?

SW: Look, we’ve covered some of the points that are really good in terms of where we’re positioned. We’re a country that understands that infrastructure can drive better growth for the economy if we’re investing well and ahead of time in transportation, infrastructure, utilities and communications. We also really understand working with the private sector. So, for all of us in the private sector who engage with government,

it’s a well-trodden path at federal and state level. We are a bit of a lucky country in that our debt to GDP is only between 30 and 40 per cent, relative to some of our global peers. We are really well positioned, and for infrastructure to play a role in the industries of the future that Australia is going to need to think about.

Having been an iron-ore-, LNG- and coal-dependent economy, we’re actually going to have to now think about how we transition to the industries of the future. New infrastructure is going to be required; just like when the Pilbara was built, there was infrastructure required there. The new industries, if they’re in critical minerals, will require investment, infrastructure, transportation and grid investment as we move to renewable energy. The offshore wind projects that we are involved in now in Victoria will require a lot of infrastructure. I generally feel quite optimistic; I’m an optimist anyway, generally, but I feel quite positive about it.

AD: I don’t want to bring the tone down, but you’re sending my Deputy Chair, John Pickhaver, to the emerging market of New York for a few years. What’s the market opportunity there?

SW: Well, John is going to head up our infrastructure and energy investment business there, so he’ll be much more on the investing side and that is a huge opportunity for us. I talked about the United States being the emerging market in infrastructure. There’s huge opportunity for private capital to come in. In anticipation of his arrival, I think Biden has put in place a few changes like the Infrastructure Investment and Jobs Act 2021, and the Inflation Reduction Act 2022, all geared to basically get more money to support investment in asset classes that John will be looking to invest in. He will be bringing the great Public Private Partnership technology that has been developed here in Australia, and they need it. You really have to go to every state, as John knows, to drive this for us all.

So, I’m sorry that it’s not win-win; it’s a lose-win for us. John is a great culture carrier and he’s wonderful at developing people, so there’s going to be a lot of team development over there, as well. On the win side for us, we have Tom Butcher and David Porter taking over on the infrastructure side. So, you’ve got really capable people that have been taking over from John here. We have also got Jo Spillane and Jeanette Royce on investor engagement, and Ivan Varughese, who’s now based in Singapore doing our Asia-Pacific investing. So, we will be looking after you.

AD: Well, thank you, Shemara. That brings our conversation to a close. Thank you for joining us today.

SW: Thank you, Adrian. Thanks, everyone.

Shemara Wikramanayake has been Macquarie Group’s Managing Director and CEO since late 2018. Wikramanayake joined Macquarie in 1987 at Macquarie Capital in Sydney. In her time at Macquarie, she has worked in six countries and across several business lines, establishing and leading Macquarie’s corporate advisory offices in New Zealand, Hong Kong and Malaysia, and the infrastructure funds management business in the United States and Canada. Wikramanayake has also served as Chair of the Macquarie Group Foundation. As Head of Macquarie Asset Management for 10 years before her appointment as CEO, Wikramanayake led a team of 1600 staff in 24 markets. Macquarie Asset Management grew to become a world-leading manager of infrastructure and real assets, and a top 50 global public securities manager. In 2018, Wikramanayake was appointed a Commissioner of the Global Commission on Adaptation, a World Bank–led initiative to accelerate climate adaptation action and create concrete solutions that enhance resilience. In 2019, Wikramanayake was appointed by the UN’s Special Envoy for Climate Action, Michael Bloomberg, to the Climate Finance Leadership Initiative, which seeks a sixfold increase in climate mitigation investment from the private sector.

Motorists are now travelling on the newly constructed Torrens Road Bridge as work on the Ovingham Level Crossing Removal Project nears completion.

The project, just north of Adelaide’s CBD, has seen the level crossing replaced with an overpass.

Traffic was switched onto the overpass for the first time in June 2022, allowing motorists to drive up and over the train lines, as part of the $196-million project, jointly funded by the South Australian and Australian governments.

The project has resulted in a road bridge over the Adelaide Metro Gawler line and Australian Rail Track Corporation Freight line, with improvements also being made to the Churchill Road intersection to increase walkability and create a new community open space.

Jon Whelan, Chief Executive of the South Australian Department for Infrastructure and Transport, explains the difference that the overpass makes.

‘The overpass has removed the need for traffic to stop to allow for passing trains, reducing travel times and congestion for motorists,’ he says.

‘It has also improved public transport usage to north-west Adelaide, as buses will no longer need to stop at the boom gates. This has cut travel times and increased both reliability and safety.’

Removal of the level crossing has also increased freight productivity and boosted safety for all road users – motorists, cyclists and pedestrians alike – by removing a road/rail crossing point.

The crossing sees an average of 21,300 vehicles pass through each day. Prior to the removal, the boom gates were down for approximately 22 per cent of the time during the combined morning and afternoon peak periods, significantly impacting passing traffic. This delay is now a thing of the past.

The South Australian Department for Infrastructure and Transport is delivering the project as part of the Public Transport Projects (PTP) Alliance with McConnell Dowell Constructors, Mott MacDonald Australia and Arup, meaning a collaborative approach has been taken to complete the works.

The consortium has previously completed major infrastructure works in South Australia as part of the PTP Alliance, including the Oaklands Crossing Grade Separation Project, and the Regency Road to Pym Street Project as part of the North–South Corridor.

Road users and the community have been watching the progression of the bridge construction during the build, as 16 South Australianbuilt, 100-tonne girders were craned into place.

The girders – the first of which was lowered into place in November 2021 – were constructed by South Australian company Bowhill Engineering. Bowhill also constructed the girders for the Regency Road overpass for the North–South Corridor.

Bowhill Managing Director Jeremy Hawkes says that moving the 100-tonne, 50-metre-long girders was a major exercise in logistics.

‘We have developed good systems on our manufacturing site, and great relationships with heavy transport companies that can safely move these large elements along the public roads – from Bowhill, over the Murray River at Blanchetown, and into Adelaide from the north,’ Hawkes says.

These projects have allowed the company to hire 10 new apprentices, and to invest in upgrades at its plant in the Murray Mallee.

The upgrade at Ovingham also involves the elevation of the western end of Churchill Road, which intersects with Torrens Road, approximately 100 metres from the Ovingham level crossing heading towards the city, so that it meets the elevated height of Torrens Road.

As part of the project, the PTP Alliance has delivered an upgrade to the Ovingham Railway Station.

The upgrade has improved the user experience and station access. It includes: ► new shelters, seating and bins ► improved fencing, platforms and access paths ► improved communication equipment and lighting ► new CCTV ► landscaping and new on-street car parks nearby.

The Ovingham Railway Station reopened to passengers in November 2022. The station is on the Gawler line, which services Adelaide’s northern suburbs.

With construction on the overpass complete, the area beneath the bridge is being developed into open space for community use, with the following features: ► a futsal court and a half basketball court ► Kaurna cultural heritage artwork ► a nature play area ► public artwork ► landscaping and revegetation ► pedestrian and cycle paths.

As part of this project, new landscaped areas are also being created. The garden bed landscape surrounding the area will comprise more than 21,000 individual plants.

The PTP Alliance has also engaged artists to paint murals on the bridge abutment walls and piers.

Among them is Mike Makatron and Harley Hall, who are painting the Kakirra ‘moon’ mural on one of the bridge abutment wallS. At the other end, Elizabeth Close, Shane Cook and Thomas Readett have painted the Tindo ‘sun’ mural.

Makatron is a full-time muralist with more than 20 years of experience, and will be collaborating in a mentorship with Hall, a Kaurna, Ngarrindjeri and Kokatha man who is an artist and social worker that is new to creating largescale public artworks.

Close is a Pitjantjatjara and Yankunytjatjara woman who is a contemporary Aboriginal visual artist based in Adelaide.

Cook is a Guwa (Koa) and Wulli Wulli man who grew up in Adelaide, and is internationally and nationally recognised as a prominent First Nations aerosol artist, as well as a youth and cultural mentor. Readett is a Ngarrindjeri and Arrernte artist based in Adelaide, who previously worked as the Tarnanthi education officer at the Art Gallery of South Australia prior to being a full-time artist.

According to Makatron, his and Hall’s striking mural showcases ‘the moon phases, but they’re looking down on top of the red landscape. The

totem animal for Kaurna is Tundra, the red kangaroo’.

He says that the process has seen him learn as much from Hall, as Hall has learnt from him.

‘You start with sketch lines, and then just a constant back and forth of making a mess, polishing it, making more mess, polishing it – and just constant push and pull with that,’ Makatron says.

Community engagement has been a core priority for the project team. Throughout the construction phase, students from local schools have been invited to become involved.

In March 2022, the project team and environmental consultants fauNature ran a bird box building workshop with students from Brompton Primary School. Ten boxes were built, and later painted, before being installed in trees around the overpass.

According to one of the children involved, ‘There’s going to be 200 trees planted, so hopefully a lot of birds will make the bird boxes their new home. We’re really looking forward to seeing all the wildlife move into the bird boxes when we’re on our way to school in the morning.’

Other school programs included a First Nations Cultural Artefacts workshop in conjunction with the Kaurna Education Program, and a Butterfly Garden session.

Students from Bowden Brompton Community School also contributed artworks by painting on recycled corflutes to decorate the fence around the site office.

The project has been supporting 265 full-time jobs per year during construction. One of the challenges the project faced was dealing with the ongoing COVID-19 pandemic. Despite the global situation, hard work meant the majority of South Australian infrastructure projects, including the Ovingham Level Crossing Removal Project, were able to deliver key milestones on or ahead of schedule. ♦

For ANZ’s Darren Bradfield, the Brisbane 2032 Climate Positive Games will do more than deliver a carbonneutral event and energy-efficient infrastructure. It also has the potential to drive cross-sector collaboration and quicken the state’s decarbonisation.

Bradfield believes the Brisbane Olympic and Paralympic Games in 2032 will encourage innovation and investment in renewables that will benefit Queensland for generations, and position the state as a leader.

‘Brisbane 2032 is a catalyst for change,’ says Bradfield. ‘It’s an opportunity for people to work together and plan Queensland’s longterm decarbonisation. New thinking in renewables can create jobs and businesses across the state. The conversations are already happening. You can feel the momentum starting to build.’

Bradfield is well-placed to comment on sustainable finance in Queensland. As ANZ Queensland’s Head of Corporate Finance and Joint Head of Institutional Banking, he works with organisations across sectors. He is an architect of ANZ’s strategic plan in Queensland, and has been an Executive Director at the bank for 16 years.

He says that Brisbane 2032 is strongly aligned with Queensland’s new plan on energy and jobs. ‘When investing in new or retrofitted assets in the lead-up to Brisbane 2032, we need to ask if those assets help Queensland deliver on its clean energy plan, and how those assets align with the state’s broader decarbonisation vision.’

Having secured hosting rights last year, Brisbane 2032 is developing strategies to achieve a Climate Positive Games in partnership with the International Olympic Committee.

Brisbane 2032 has ambitious goals, including a carbon-neutral event, additional climate benefits for host communities, and leaving a long-term legacy that aligns with, and accelerates, Queensland’s emission reductions and renewable targets.

In October 2022, the Queensland Government released its Energy and Jobs Plan, which outlines a pathway

to a clean, reliable and affordable energy system by 2035 – and envisions providing power for generations and creating well-paid jobs.

Queensland has a target of 70 per cent renewable energy by 2032, and 80 per cent by 2035. The government says that private sector investment in new renewable energy generation, batteries and storage will be integral to the plan’s success.

‘A large amount of capital will be needed to fund this transformation,’ says Bradfield. ‘But it’s not just about finance. Banks such as ANZ can use their expertise in renewables to help organisations and encourage new conversations about what is required. Queensland has much work ahead, but there is so much potential in this state.’

Bradfield says that Brisbane 2032 will require broader thinking across sectors, particularly in areas such as public transport. ‘For example, local councils might look at electrifying bus fleets. The next question could be: are the bus depots still in the right place as we move towards decarbonisation? How do we power those depots?’

Stadium retrofitting for Brisbane 2032 could be another opportunity, says Bradfield. ‘When The Gabba stadium is redeveloped to be the centrepiece of the Games, should a giant battery be installed to store solar energy? And how can clean energy infrastructure at The Gabba be designed to be easily upgraded as new technology is developed?’

Social housing should be another priority, says Bradfield. ‘When building Olympic Villages, we must consider their long-term sustainability and how they contribute to affordable housing in South East Queensland,’ Bradfield says. ‘Everything from housing materials to housing design must be aligned with the state’s decarbonisation goals.’

Bradfield believes the benefits from Brisbane 2032 will extend far beyond the city. ‘By using stadiums across South East Queensland, the Games will benefit the Sunshine Coast, the Gold Coast and other areas. Brisbane 2032 is an opportunity to create new connections and collaborations on renewables across South East Queensland.’

Regional Queensland also has a vital role, says Bradfield. ‘A big part of the government’s energy strategy is about converting coal-fired power stations to clean energy hubs. Much of that work will be in regional towns in Central and North Queensland. As part of planning for Brisbane 2032, we should think about collaborations between urban and regional cities on renewables.’

Bradfield has watched ANZ’s focus on sustainable finance – and its expertise in renewables – grow significantly over the past two decades.

ANZ is targeting $50 billion of lending to renewable projects by 2025. It has already hit $31 billion. ‘Our customers have a growing demand for sustainable finance, and ANZ is well-placed to supply that capital. We can also use our expertise to help existing and new customers transition towards decarbonisation.’

ANZ’s work in corporate finance and institutional banking in Queensland continues to expand. As an example, this year the bank provided structured asset finance for the Kilcoy Global Foods Australia, a premium beef processor and longstanding ANZ customer. The finance had facilities to support sustainability initiatives.

ANZ also provided capital for a regional bus operator to electrify part of its fleet and upgrade charging at its depot. In Queensland agriculture, ANZ supported a customer in replacing diesel generators on water bores with solar batteries.

In commercial lending, ANZ has a $200-million facility to support small and medium-sized businesses in buying assets in the clean energy transition. This is a joint national initiative with the Clean Energy Finance Corporation.

ANZ is also involved in two new large sustainability-linked loans for key Queensland infrastructure assets. ‘ANZ continues to fund more renewable projects and help more organisations across the state,’ says Bradfield. ‘That’s a result of ANZ’s long-term commitment to sustainability and its initiatives in Queensland.’

Bradfield is excited about Brisbane 2032’s potential to help Queensland communities, and ANZ’s ability to contribute. ‘ANZ has the people, expertise, relationships and capital to make a difference. Brisbane 2032 will be something very special, and a new benchmark for Olympic and Paralympics Games.’ ♦