The Clean Energy Finance Corporation has secured a $2 billion top-up from the federal government to help households and small businesses lower emissions amid the race to meet 2030 climate change targets.
The world’s largest dedicated green bank will use the new investment, announced on Thursday, to “offer significant savings for households and small businesses making the switch to renewable energy”, according to the government.
The Clean Energy Finance Corporation (CEFC) forms a key part of the Albanese government’s plan to meet its 2030 target of getting 82 per cent of Australia’s electricity needs from renewable sources and to reduce emissions by 43 per cent compared to 2005.
The federal government on Thursday said the funding was set aside in last month’s Mid-year Economic and Fiscal Outlook, which estimates the state-owned corporation will make $3.9 billion in loans and equity investments this financial year.
The extra $2 billion commitment is on top of the CEFC’s existing capital allocation of $30.5 billion, according to its latest annual report.
Prime Minister Anthony Albanese said the additional funding would “unlock around $6 billion worth of private sector investment, supporting local good well-paid jobs, energy security and economic growth”.
The CEFC makes investments in the form of debt or equity that supports large renewable energy projects, household energy upgrades and innovation in low emissions technologies.
It has nearly $18 billion worth of investment commitments across more than 380 major transactions. Last year, the CEFC invested $4 billion and leveraged an additional $12 billion in private investment.
This included $100 million in support for three renewable energy projects being delivered by French developer Neoen across Australia, as announced in December.
The additional CEFC funding announced on Thursday builds on the $20.5 billion added in the 2023 federal Budget.
This included $19 billion earmarked for low-cost finance to build new transmission lines to link renewable energy to the grid to through the Rewiring the Nation program.
Another $1 billion is being committed through the Household Energy Upgrades Fund to deliver discounted loans with commercial banks, including Westpac and ING, to households purchasing clean energy technologies like solar battery systems and electric vehicle chargers.
Concessional loans are also available to households installing energy efficiency upgrades like insulation and double-glazed windows.
The remaining $500 million committed in the 2023 Budget is being spent through a Powering Australia Technology Fund which aims to commercialise new clean energy technologies.
Climate Change and Energy minister Chris Bowen said that there is huge economic opportunities in the growing demand for clean energy and its inputs as the world shifts towards net zero.
“We’re getting on with the changes needed to make the most of Australia’s natural comparative advantage, having some of the best sun, wind, and critical mineral resources in the world,” Mr Bowen said.
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