Australia’s proposed A$10 billion ($9.8 billion) Clean Energy Finance Corporation (CEFC) is likely to prove the “last piece of the puzzle” in financing large-scale renewable energy projects in the short to medium term – but it should avoid crowding out private investment, an investment banker said.
Climate change minister Greg Combet tabled legislation in the House of Representatives on 23 May to establish and finance the CEFC with A$2 billion a year in public funds for five years.
Combet told the House that the CEFC, which would start operations on 1 July 2013, aimed to secure private co-investment for projects. It was “unlikely ever to be a sole financier,” he said.
At least half the CEFC’s funds would be spent on renewable energy, with the remainder going to energy efficiency and low-emission technologies. The fund would not cover R&D, established technologies such as conventional gas, carbon capture and storage, or nuclear projects… Read more