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leasx

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24/12/18

12:45

Post #: 36951750
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Originally posted by strangelogic: ↑

Hi Leasx

That is pipeline only - not funded or committed. As we know with IFN that may or may not translate into operating projects dependent on capital availability and ROI. This is affected by energy policy and clarity (or the lack thereof) and thus carbon reduction targets that influence carbon offset schemes. These are in effect, a market subsidy paid by energy consumers.
I would have been really worried if we hadn't already got close to the 2020 target as it is 2019 in just over a week. Even the government is looking to 2030 as the next goal to meet the Paris accord commitments although there is debate on this being adequate.
https://www.environment.gov.au/system/files/resources/c42c11a8-4df7-4d4f-bf92-4f14735c9baa/files/factsheet-australias-2030-climate-change-target.pdf
The 2020 target was inadequate for it's purpose and if you read the latest science is short by several multiples to achieve a meaningful positive impact on climate change.
https://www.ipcc.ch/sr15/
https://theconversation.com/the-uns-1-5-c-special-climate-report-at-a-glance-104547

So - Even if one does not give credence to the global warming forecast, there is enough public sentiment that is in favour of stronger action (Wentworth bi-election is a good example) and this is what counts when it comes to politics. Also there is an emerging push from businesses who are starting to analyse the risks and see the downside of climate change as a significant one. Insurance companies are the canaries in this particular coalmine so keep an eye on them.
disallowed/business/banking-and-finance/none-of-our-insurers-are-keeping-pace-with-climate-change-20180213-p4z073.html
https://www.forbes.com/sites/mikescott/2018/05/31/insurers-in-the-front-line-of-the-fight-against-climate-change-shoot-themselves-in-the-foot/#4eca954440fa

All this IMHO means that renewables will get more support to accelerate the carbon emission reduction process. The longer it takes, the more money will eventually be thrown at it as that is how many humans try to fix things when the penny finally drops. My thesis is that will be positive for IFN in the medium term.

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Renewables will get support but why does that mean IFN's old fledgling assets get support? They might get support to add batteries but their Lake Bonney wind farms will be toast once the LGCs are finished and they have to keep servicing the debt.

IFN Price at posting: 42.5¢ Sentiment: Hold Disclosure: Not Held
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