National 'green bank' gets $20.5 billion injection
The Australian Government has allocated an additional $20.5 billion to the CEFC to accelerate progress towards Australia’s transition to net zero.
The Australian Parliament has passed the Treasury Laws Amendment, providing for the CEFC to receive the first $11.5 billion and allowing for a further $9 billion to be added by other new appropriations.
The additional funding provides for the creation of three new investment priorities to be delivered by the CEFC:
- $19 billion to help deliver the Rewiring the Nation program, with investments including high voltage transmission, long duration grid storage and electricity distribution network infrastructure
- $1 billion to create the Household Energy Upgrades Fund, to provide discounted consumer finance to increase sustainability across the housing sector
- $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.
The $20.5 billion additional capital allocation will be invested alongside ongoing CEFC investment activities across the economy, including in renewable energy and energy efficiency, emerging cleantech and hydrogen opportunities, among others.
“The Rewiring the Nation program, Household Energy Upgrades Fund and Powering Australia Technology Fund substantially expand the role of the CEFC, alongside its ongoing core businesses," said CEFC Chair Steven Skala AO.
"New large-scale investments in priority grid infrastructure projects complement our existing work in transforming our energy system and bringing the benefits of decarbonisation to key sectors of our economy."
“After a decade as Australia’s specialist clean energy investor, the CEFC has the experience and track record to finance complex infrastructure projects, back clean energy generation and support significant decarbonisation across the Australian economy. With this additional $20.5 billion capital allocation, we recognise the challenges and opportunities of building on our investment portfolio in our second decade of operation.”
The CEFC will provide further information on the investment approach for each of the three new investment priorities in due course.