Government's $10bn energy fund passes lower house

31/05/2012 - The federal government has pushed legislation through the lower house to set up a $10 billion green investment bank for clean energy projects.

Find related suppliers

After parliamentary debate on Tuesday and Wednesday the government won a vote to pass a legislative package to set up the Clean Energy Finance Corporation (CEFC) just before the House of Representatives adjourned.

Climate Change Minister Greg Combet said some contributions by coalition MPs were "misleading and misrepresentative" of the legislation.

They had spoken "nonsense," Combet told parliament.

Coalition MPs argued the CEFC was based on accounting trickery, with the government calling the fund a commercial venture which wouldn't push the budget into deficit because it didn't have to be included.

The government will invest $2 billion a year over five years from 2013-14 in the corporation, which will link private companies in funding large-scale clean energy projects.

It says the corporation will become self-supporting.

A committee report, tabled on Wednesday, recommended the parliament pass the legislation but coalition members lodged a dissenting report saying the CEFC presented an unacceptable risk to taxpayers by underwriting a significant amount of commercialisation that could fail.

The minority members of the committee argued against the laws being passed.

The corporation will support renewable and low-emission energy projects through loans, guarantees and equity investments from 2013/14, as part of the government's carbon price package.

Treasury has estimated the CEFC could lose 7.5 per cent of the capital it invests on unsuccessful projects, but overall it will aim to make a profit of four per cent a year.

Labor MP Stephen Jones said the corporation was needed because of a "market failure" in clean energy investment.

The Clean Energy Finance Corporation Bill 2012 and subsequent bills now move to the Senate.

Source: AAP

Browse the IndustrySearch directory: Electrical & Power Equipment

Have your say...

We welcome thoughtful comments from readers Comment Guidelines The approval of your comment is at the discretion of this article's publisher. Write your comment with the following in mind to ensure the highest likelihood of it being approved: - No promotional undertones - No use of profanity - Good spelling, grammar and layout - Check punctuation, language and missing words - No use of aggression - No unsubstantiated claims We reserve the right to remove comments at our discretion. Your name is used alongside Comments.
Name:
Email: