Australia's climate ructions are having a chilling effect on investment, the country's largest superannuation funds have told a parliamentary hearing.
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Prime Minister Scott Morrison has said he would prefer Australia to achieve net zero carbon emissions by 2050, in line with commitments by many large economies.
But the net-zero ambition is still not government policy as the coalition has failed to secure a truce in the climate wars that have ended careers of previous prime ministers.
"Policy instability or variance can have a chilling effect on investments," CBUS chief executive Justin Arter told parliament's economics committee on Thursday.
"That's not a desirable thing for the Australian economy, and therefore not a desirable thing for investors or superannuants."
The committee heard of growing concerns among financial institutions about Australia as a place to invest because of a lack of action at a federal level on climate change and sustainability
Ian Silk, chief executive of the country's largest superannuation fund Australian Super, said climate change was a recognised investment issue, not just an environmental concern.
"There are risks and opportunities that come with it," he said.
"So for local and global investors to have a clear idea of what the regulatory settings are, and what they're likely to be in the future, will give investors greater confidence."
Australian Super has more than $100 billion invested across the economy, including in key infrastructure facing long-term risks, while CBUS manages $63 billion.
Australian Associated Press
