7 October 2015
Investment in cleaner technology is the key driver for Australia’s transition to a more competitive economy in a carbon constrained world, with the Clean Energy Finance Corporation (CEFC) helping accelerate that, Chair Jillian Broadbent AO said.
Speaking at the Investor Group on Climate Change (IGCC) 2015 Climate Change Investment and Finance Summit in Melbourne today (7 October), Ms Broadbent said increasing the supply of low carbon capital was central to the CEFC’s activities.
“To date, we’ve made investment commitments of $1.4 billion towards projects with a total market value of $3.5 billion,” Ms Broadbent said.
“Our new financing initiatives are supporting development and deployment of innovative technologies in Australia, reducing business operating costs and increasing productivity. This is helping deliver emissions reduction and contributing to the resilience and competitiveness of the economy.
“We’re working with financiers, project proponents and utilities to increase investment. In our current portfolio, every dollar of CEFC investment has attracted $1.80 of private sector investment.”
The CEFC’s operating model of early engagement with project proponents has demonstrated that it is helping to progress innovative projects. This is being complemented through the development and bringing to market of innovative finance programs with other market participants.
“We’re acting as a catalyst – a cornerstone financier – to grow investment in the sector. The breadth of our work is demonstrated by our recently announced $250 million Large-Scale Solar Program, the Sundrop Farms greenhouse in Port Augusta, which will use solar power in an innovative approach to arid-climate food production, and of course, Australian green bonds. We count as key successes the market’s enthusiasm to take over the reins in these areas.”
“Our investment commitments for the CFS Australian Clean Energy Infrastructure Fund, EG Group’s High Income Sustainable Office Trust (HISOT) and with SGCH for community and social housing are designed to help mobilise additional investment towards growing energy efficiency and greater deployment of renewable power across the property sector,” Ms Broadbent said.
Ms Broadbent said that looking ahead, the CEFC had discussions underway with project proponents and with the banking and clean energy sectors to find further innovative finance solutions that will catalyse a range of diverse opportunities.
The Investor Group on Climate Change (IGCC) is a collaboration of Australian and New Zealand investors focusing on the impact that climate change has on the financial value of investments. The 2015 IGCC summit is being held in Melbourne on 6 & 7 October.