(22 June 2023 – Australia) The Australian government has allocated an additional A$20.5 billion to the Clean Energy Finance Corporation (CEFC) for three new investment priorities stemming from newly passed legislation.
The government passed legislation providing for Australia’s green bank to receive the first A$11.5 billion allocation with a further $9 billion to be added by new appropriations. The new investment priorities deployed alongside existing CEFC activities such as renewable energy, energy efficiency, emerging cleantech and hydrogen opportunities include-
- A$19 billion to deliver the “Rewiring the Nation” program such as high voltage transmission, long duration grid storage and electricity distribution network infrastructure
- A$1 billion to create the Household Energy Upgrades Fund, to provide discounted consumer finance to increase sustainability across the housing sector
- A$500 million for a new Powering Australia Technology Fund, to support the growth or expansion of clean technology projects, businesses and funds to facilitate the development, commercialisation and take up of clean energy technologies.
AGL Energy COO Markus Brokhof says Australia needs to start building its own wind and solar components if it is avoid the supply chain blockages and delays that threaten to derail the country’s switch from coal to renewables. The country must revive its manufacturing sector to build some components locally. The government is also working with energy investors to launch the nation’s first sovereign green bond in mid-2024 to boost corporate investment in the transition to net zero.
“This additional capital will enable the CEFC to make a significant contribution to the achievement of net zero emissions by 2050, an ambitious and important national goal that will transform our economy and improve our environment,” CEFC Ian Learmonth said.
“Subject to commercial considerations, we expect to make substantial grid-related investment decisions within the next 12 months. While these transactions are often large and complex, we must move quickly to invest in the expansion and augmentation of our grid and related infrastructure to deliver on Australia's net zero objectives” Learmonth added.
“This is most significant support by the Australian Government and Parliament for our work as Australia's green bank in investing on behalf of all Australians in our low emissions future. The additional funding recognises the success of the CEFC model in investing to lead the market, proving up investment opportunities and operating with commercial rigour” stated CEFC Chair Steven Skala.