A clean option for savers
National Seniors' research shows older savers want government-backed Clean Energy Bonds. But will Australia follow the United Kingdom and make them a reality?
Key Points
1 in 4 people aged 50 and older invest in term deposits or government bonds.
Older people invest in these products because they are safe, liquid and simple.
54% of people investing in term deposits or government bonds would consider buying Clean Energy Bonds.
New research shows older people want to invest in Clean Energy Bonds.
The research supports National Seniors Australia’s call for the federal government to issue Clean Energy Bonds to fund new energy infrastructure (such as community batteries) to help Australia meet its 2050 emissions reduction target.
The results come from the latest National Seniors Social Survey conducted in early 2023 and are outlined in a new infographic.
Our research found one in four people aged 50 and older invests in term deposits or government bonds. It found that the top three reasons for investing in these products was because they provide safety, liquidity and simplicity.
“People want simple, liquid and safe ways to invest. For most, their only choice is a government-backed term deposit” National Seniors Chief Advocate, Ian Henschke said.
“While we applaud the Treasurer’s announcement to issue sovereign green bonds for large institutional investors, thousands of ordinary Australians could also contribute billions, if given the chance.”
That’s where Clean Energy Bonds come in.
“Our survey found 54% of people investing in term deposits or government bonds would consider buying Clean Energy Bonds,” Mr Henschke said.
People invest in term deposits or government bonds because they are not able or willing to put money into super.
Clean Energy Bonds would give them another option by being available to purchase over the counter at a bank or other financial institution, making it easy to get involved.
Interestingly, the UK government is already doing this to help meet its 2050 emissions reduction target.
In 2021, the UK government began issuing Green Savings Bonds for as little as £100 (about $A187) or as much as £100,000 to help fund environmental projects.
Green Savings Bonds in the UK now pay an annual interest rate of 4.2% over three years.
“Like our UK friends, we want to be a part of the solution," Mr Henschke said. “Clean Energy Bonds will also help create jobs, stabilise energy supply and reduce electricity prices.”
The Clean Energy Bonds idea caught the eye of National Seniors member Professor Rob Morrison OAM (former presenter of television’s The Curiosity Show), who told us he would be keen to buy them for himself and his grandchild if they were available.
"Investing in projects with a positive impact on the environment, which guarantee a modest return, is a simple solution to our biggest challenge. It’s not a radical idea. The UK government is already doing it,” Prof. Morrison said.
“It amazes me that it is not already something we could have in Australia, especially given all the blustering from state and federal governments about the need for us to be a world leader in green technology."
You can view the Clean Energy Bonds infographic here and support our Clean Energy Bonds campaign here.
