There’s a light at the end of the tunnel for struggling renewable energy companies with the federal government pledging $10 billion to those having a difficult time making a go of it in the sector.
The money will aid those companies in securing capital.
Recently the federal government has come under fire for what critics have seen as a green ‘backflip’, with concerns mounting at the resignation of Greens leader Bob Brown.
However, the newly announced Clean Energy Finance Corporation (CEFC) is helping to boost the confidence of those in the green energy sector. Come July of 2013, the CEFC will provide economic support to the tune of $2 billion per year over a five year stint to aid in the longevity of struggling companies and their initiatives in the renewable energy sector.
The Reserve Bank of Australia led a review of the CEFC and found that capital should be applied through a ‘commercial filter’ in order to add a monetary injection into the sector.
Treasurer Wayne Swan has labelled the move as economically positive, with its case-by-case investment basis a safe move for all involved.
“The corporation will facilitate the transformation of our economy by altering the risk landscape for investors,” he says. ”This will open up new opportunities for business to invest in clean energy.”
Newly appointed Greens Leader Christine Milne has also showed her support for both the CEFC and the review.
“Experts and experience around the world show that a program like the CEFC is vital alongside a carbon price to drive effective and efficient economic transformation,” Milne says.
However, opposition climate action spokesperson Greg Hunt has labelled the entire body as a strain on taxpayers, envisioning public disputes in the future.
“The Review acknowledges that it will have to accept a higher risk and lower financial returns on the $10 billion planned for investment in the renewable energy sector,” says Hunt. “If the government is so confident that Australians will support this use of their money, then they should take to it to an election along with the carbon tax.”
Even in light of the criticism, the confirmation of the renewable energy support comes as welcome news to the green building sector and is a timely support for the industry at large.