$10 billion Clean Energy Finance Corporation announced
A $10 billion Clean Energy Finance Corporation to invest in the commercialisation and deployment of renewable energy and enabling technologies, energy efficiency and low-emissions technologies has been announced as part of the Federal Government's carbon price package.
It will also invest in the transformation of existing manufacturing businesses to re‑focus on meeting demand for inputs for these sectors. Funding will be divided into two streams:
- a renewable energy stream which will have one half of the funding allocated; and
- a general clean energy stream which will have half of the funding allocated and will be able to fund renewable energy projects in addition to the dedicated stream.
The CEFC will provide finance for projects through commercial loans, concessional loans, loan guarantees and equity. Capital will be reinvested in the CEFC.
The CEFC will have an independent Board, comprised of experts in banking, investment management and clean energy and low-emissions technologies, with its responsibilities to include setting the investment strategy for funds being invested and managing these investments consistent with the investment mandate prescribed by the Government. It will not invest in Carbon Capture and Storage technologies.
The Clean Energy Finance Corporation will be part of the Treasury or Finance and Deregulation Portfolio.