CEFC statement on proposed Low Emissions Technology Commercialisation Fund
11 November 2021
The CEFC has welcomed a commitment from the Australian Government to provide the CEFC with $500 million in additional capital as part of the planned creation of a $1 billion Technology Commercialisation Fund.
The proposed fund would invest in early-stage and growth businesses which are commercialising technologies that have the potential to accelerate Australia’s transition to net zero emissions by 2050.
Creation of the fund is designed to assist the Australian Government in achieving the objectives set out in its Long-Term Emissions Reduction Plan, by further pursuing the technologies identified in the Low Emissions Technology Statement.
The proposed fund would draw on an additional $500 million Government allocation to the CEFC, with a further $500 million in matching capital to be raised from the private sector.
CEFC CEO Ian Learmonth said: “The CEFC has a strong track record of advancing the development of Australia’s cleantech ecosystem. The Technology Commercialisation Fund will enable us to continue investing venture and growth capital to support the commercialisation and deployment of low emission technologies.
“It will also complement the ongoing role of our $200 million Innovation Fund, which is matching investors with local entrepreneurs whose homegrown technological breakthroughs are so important to decarbonisation.
“Right across the Australian economy, leading innovators are working to deliver a more sustainable economy, capturing the benefits of the clean energy transition. There is no single solution to cutting carbon emissions, which is why the diversity of these technologies is so important.”
The proposed allocation of an additional $500 million to the CEFC for investment through the Technology Commercialisation Fund would represent the first increase in Australian Government funding for the CEFC since it was established in 2012.
The CEFC 2020-21 Annual Report reported lifetime investment commitments of $9.5 billion to June 30 2021. With each dollar of CEFC finance attracting an additional $2.40 from the private sector, the total transaction value of CEFC investment commitments was almost $33 billion.
Total repayments since the CEFC began investing were almost $2.5 billion to 30 June 2021, with this capital available for CEFC reinvestment. CEFC investment commitments include $117.6 million through the Clean Energy Innovation Fund, driven by a record 11 investments in the 2020–21 year.