19 December 2012
The Boards of Low Carbon Australian Limited (LCAL) and the Clean Energy Finance Corporation (CEFC) are pleased to announce their in-principle agreement on the merger of LCAL's energy efficiency programs, staff, systems and platforms into the CEFC.
CEFC Chair Jillian Broadbent AO said "Working as one with the LCAL team will accelerate the speed with which the CEFC can build its operations. The organisational platform and the team's proven experience in energy efficiency activities will be an enormous asset to the CEFC."
LCAL has developed innovative models for financing energy efficiency and the CEFC is keen to build on the experience, expertise and market goodwill created by LCAL's pioneering work. LCAL will be a valuable resource for the CEFC in developing its own investments in the clean energy sector.
Since 2010, LCAL has been effectively working within the market place developing successful finance and investment models to boost private sector investment in energy efficiency. LCAL has contracted, or has under offer, more than $84 million of its funds. This, together with private sector co-financing, has made available over $200 million to cleaner energy in Australia.
LCAL Chairman, Martijn Wilder AM said "Integrating the LCAL program, operation and staff expertise with the CEFC will enable continued growth of its activities. It means the LCAL team, which has done an outstanding job building a successful clean energy finance organisation, will continue to work with existing clients and those wishing to develop new CEFC financing opportunities." The objective of the CEFC is to mobilise its own and private sector capital into renewable energy, low-emissions and energy efficiency projects and technologies. Investments in energy efficiency are expected to be an important part of the CEFC's investment portfolio. The $10 billion, commercially orientated CEFC will build on and scale-up successful LCAL models. Existing LCAL contracts and investment
programs will remain in place.
The CEFC and LCAL Boards are committed to a seamless transition to one entity, with no loss of continuity in the market. This will facilitate the building of a pipeline of new investments by the CEFC from 1 July 2013. It is intended that all aspects of the merger will be completed by 30 June 2013.
The CEFC was announced in July 2011 as part of the Government's Clean Energy Future Plan. The CEFC will be a $10 billion fund dedicated to mobilising its own and private sector capital into renewable energy, low-emissions and energy efficiency projects and technologies in Australia. It will operate with the expectation of minimal budgetary assistance and make its investment decisions, independently of the Government, based on rigorous commercial assessments.
About Low Carbon Australia
Low Carbon Australia Limited is an independent company
established by the Australian Government in 2010 to deliver
innovative programs to help the move towards a low carbon
Low Carbon Australia provides financial solutions to Australian business, government and the wider community to encourage action on energy efficiency, cost-effective carbon reductions, and accreditation for carbon neutral products and organisations.
Since commencing operations, Low Carbon Australia has contracted investments in excess of $60 million, generating a flow of new financing and markets making available more than $200 million in new finance for energy efficiency in the marketplace.
Low Carbon Australia has financed a range of individual energy efficiency projects, and significant investment partnerships with National Australia Bank & Eureka Funds Management, Origin, Macquarie Bank, FlexiGroup, Commonwealth Bank, Global, Melbourne City Council and City of Sydney.
Clean Energy Finance Corporation
Phone: +61 457 732 219
Media release, 2012