The Australian government is to establish a new commercially oriented ‘green investment bank’ to invest $10bn (€7.5bn) in renewable energy, low pollution and energy efficiency technologies.
The Clean Energy Finance Corporation (CEFC) was announced as part of a raft of green initiatives over the weekend and takes inspiration from the UK’s planned £3bn Green Investment Bank.
“A new $10bn Clean Energy Finance Corporation will invest in renewable energy, low-pollution and energy efficiency technologies,” the government said. “The Clean Energy Finance Corporation will be a central institution in Australia’s move to a clean energy future.”
It will be independent and be headed by a chair with banking or investment management experience.
The chair will recommend a detailed investment mandate, risk management policies and governance arrangements.A board will comprise “experts in banking, investment management, renewable energy and low-pollution technologies”.
The CEFC will have two equal streams of funding – renewable energy and clean energy, though it won’t invest in carbon capture and storage (CCS), which is supported through existing programs. Any capital returned from investments will be reinvested.
Australia will also set up a new body called the Australian Renewable Energy Agency (ARENA) to administer $3.2bn of existing funding. It will also receive future funding from dividends from the CEFC. There will also be a $200m Clean Technology Innovation Program.
The government also announced a new $946m Biodiversity Fund to protect Australia’s unique species from climate change. Government announcement