Latest news with #CEFC
Reuters
28-07-2025
- Business
- Reuters
Australia's green bank makes record $2.3 billion in clean energy investments
SYDNEY, July 28 (Reuters) - Australia's green bank on Monday said it invested a record A$3.5 billion ($2.29 billion) in clean energy projects and grid infrastructure last financial year to accelerate the country's transition from fossil fuels to renewables. Australia's coal power generation makes it one of the highest polluting countries per capita in the world. It plans to shut all coal stations by 2038 and has pledged to achieve a target of 82% renewable generation by 2030. But analysts have called for increased investment to meet this goal, achieve net zero emissions by 2050 and ensure energy security. Wood Mackenzie projects Australia is on track to hit only 58% renewable energy generation by the end of the decade. The Clean Energy Finance Corporation, Australia's A$32.5 billion green bank, has a mandate to 'facilitate increased flows of finance into the clean energy sector and to facilitate the achievement of Australia's greenhouse gas emissions reduction targets'. During the 2024-25 financial year, it committed A$4.7 billion, including A$3.5 billion to renewable energy projects and grid infrastructure. The CEFC said it was a 'record' level of investment and more than double the amount of the previous fiscal year. The largest transaction was A$2.8 billion towards a programme to improve Australia's national power grid, including A$2.1 billion for construction of a new electricity transmission link on the country's east coast. The CEFC said it was ramping up investment in clean energy to help Australia meet its renewable energy and emissions targets. 'Australia requires ongoing investment in renewables and long-duration storage, clean energy affordability for consumers and measures to cut emissions,' CEO Ian Learmonth said. 'Investment activity at this scale promises substantial economic and local employment benefits across Australia, strengthening our economy for a net zero future while making critical progress towards decarbonisation.' ($1 = 1.5267 Australian dollars)
West Australian
24-07-2025
- Business
- West Australian
Dimitri Burshtein & Alex Sanchez: Taxpayer-funded green bank serves ‘grifters and rent-seekers'
The Clean Energy Finance Corporation is one of several off-budget entities operated by the Commonwealth government that, as S&P has observed, are 'increasingly obfuscating Australia's fiscal position and borrowing needs.' It is time to begin an orderly wind-down of the CEFC with the proceeds redirected toward reducing debt and easing the burden of interest payments. Like its Future Fund cousins, the CEFC no longer fulfils a necessary role, if, indeed, it ever served a purpose beyond centralised economic planning. Established in 2012, the CEFC was created to channel finance into the clean energy sector. Initially seeded with $10 billion in borrowed funds, it now manages roughly $30b including $19b earmarked for the Rewiring the Nation initiative. These commitments contribute to Australia's mounting national debt pile, which now approaches $1 trillion dollars. The CEFC is tasked with generating returns of 2 to 3 per cent above the five-year government bond rate yet it does not release data on its investment performance, raising questions as to whether it is achieving its benchmark. Had the CEFC actually achieved its target mandate, it would today be managing well over $50 billion. It is classified as an off-budget entity on the assumption that it generates commercial returns yet no robust evidence supports this premise. The Government cannot have it both ways. It cannot say that the CEFC does not crowd out private capital at the same time as spruiking that private money is freely flowing. If private money is flowing, logic dictates that there can no longer be a case for the CEFC. When the CEFC was formed, clean energy investment faced considerable hurdles: capital was scarce, perceived risks were high, and the technologies were still emerging. Today, the landscape has fundamentally changed. Private capital is plentiful and actively flowing into renewable projects. Risk-adjusted returns are attractive, and technologies have matured. Simply, anye market failure that once may have justified government involvement no longer exists. There is another contradiction with the CEFC — this time between its stated goals and its actual accountability. While it claims to support Australia's transition to net zero emissions by 2050, it has yet to produce clear, measurable data demonstrating emissions reductions attributable to its activities. Despite more than a decade of operation, its reports and public statements are heavy on references to 'net zero' but light on verifiable outcomes. For an organisation that purports to be outcomes-focused, this lack of transparent emissions reduction data is striking. In focusing on activity rather than results, the CEFC serves as a textbook example of Milton Friedman's observation that 'nothing is so permanent as a temporary government program.' Its persistence appears to reflect not market need, but a desire to preserve high-paying public sector jobs and ongoing benefits to grifters and rent-seekers. Effectiveness and efficiency comparisons to the Future Fund are also illuminating. The Future Fund publishes quarterly portfolio performance reports while the CEFC provides no performance information. In terms of scale, the Future Fund manages $300 billion with 305 employees, whereas the CEFC manages $30 billion with 152 staff. Such contrasts are striking. Proponents may argue that the CEFC reduces project financing costs or facilitates complex transactions. But at what cost to taxpayers. And for how long must the public subsidise a now-thriving, profitable industry? Each resource consumed by the CEFC is a resource not used elsewhere for better purposes. This means that rather than closing investment gaps, the CEFC now just distorts the market. By supplying subsidised capital backed by taxpayers, it competes with private investors, crowding them out and diminishing market discipline. In doing so, it transfers financial risk from the private sector to the taxpayer. Considering mounting budgetary pressures, there is little justification for maintaining a government-run, taxpayer-funded 'green bank.' Especially when the private sector is already well-equipped to drive the clean energy transition, free from the moral hazards and political interference associated with public funding. Every dollar committed to a redundant institution like the CEFC is a dollar not used to reduce public debt or fund essential services. The CEFC may have had a valid role in 2012. But in 2025, that role has essentially vanished. It is time to shutter the CEFC, liquidate its assets, reduce national debt, and allow the private market to operate without unnecessary government intervention. Dimitri Burshtein is a principal at Eminence Advisory and former government policy analyst. Alex Sanchez is an economist and former adviser to the Albanese Government.
News.com.au
09-07-2025
- Automotive
- News.com.au
Australian government loans Bunnings $100m in bombshell deal
Wesfarmers has secured a $100 million loan from the Australian government's Clean Energy Finance Corporation (CEFC) to install more solar panels, batteries and EV chargers at its Bunnings and Officeworks stores. CEFC chief executive Ian Learmonth hoped the funding would create a 'ripple effect' across the commercial sector, where the intake of rooftop solar adoption has lagged behind residential properties, according to The Guardian. The loan is to be paid back by Wesfarmers over seven years at a competitive interest rate. The financing is aimed at accelerating the group's decarbonisation plans. Ampol's $20m Land Bonanza: What's Next? 'As a leading Australian company with these household brand names, we can provide them with competitive finance that's allowing them to meet a business case to deliver roof top solar, battery storage, various energy efficiency initiatives and putting EV chargers in,' Mr Learmonth said. 'There is potential growth in the commercial and industrial sectors. When people see Bunnings and Officeworks doing this, it adds a ripple effect where other large companies can be influenced by seeing what these companies are doing, and seeing their car parks with EV chargers.' Mr Learmonth said the partnership with Wesfarmers, as both owner and operator, presented a great opportunity. Bunnings, Officeworks, and WesCEF all have targets to reach net-zero direct emissions by 2030 and to use 100 per cent renewable electricity by the end of 2025. The news comes as Bunnings introduced electric vehicle chargers in the car parks of selected stores. The hardware giant was offering customers the convenience of recharging their vehicles while they shop for their home improvement needs. The retailer has installed chargers at 14 locations across New South Wales, Victoria, and Western Australia, as well as in New Zealand. Bunnings strategically targeted areas with the highest demand for EV charging. The company said it was committed to supporting sustainable practices and adapting to the evolving needs of its customers. Rod Caust, Bunnings Director of Stores, explained the motivation behind the rollout. 'As electric vehicles become more common in Australia and New Zealand, we're installing EV charging stations in some of our store car parks so our customers with EVs can charge up while they shop,' he said. The initiative is part of Bunnings' broader strategy to meet the changing needs of its customers and support the transition to more sustainable transport options. The chargers available at Bunnings include a mix of 22kW, 50kW, and the high-speed 120kW models, catering to a variety of EV charging needs.
The Guardian
27-06-2025
- Business
- The Guardian
Australian government loans $100m to install EV chargers and solar panels at Bunnings and Officeworks stores
Wesfarmers has secured a $100m loan with the government's Clean Energy Finance Corporation to install more solar panels, batteries and EV chargers at its Bunnings and Officeworks stores. The chief executive of the CEFC, Ian Learmonth, said he hoped the financing package at the high-profile stores would help create a 'ripple effect' through the commercial sector, where the uptake of rooftop solar has been slower than across residential properties. The financing package, to be paid back by Wesfarmers over seven years at a competitive interest rate, would help accelerate the group's decarbonisation plans, Learmonth said. 'As a leading Australian company with these household brand names, we can provide them with competitive finance that's allowing them to meet a business case to deliver roof top solar, battery storage, various energy efficiency initiatives and putting EV chargers in,' he said. Sign up for Guardian Australia's breaking news email 'There is potential growth in the commercial and industrial sectors. When people see Bunnings and Officeworks doing this, it adds a ripple effect where other large companies can be influenced by seeing what these companies are doing, and seeing their car parks with EV chargers.' He said large industrial roof spaces had not been as well utilised with solar panels as households, sometimes because either structurally the roofs were not strong enough, or agreements were complicated between tenants and building owners. He said: 'This is a great opportunity where we have the owner and operator – Wesfarmers – that we can work with.' The CEFC, with access to $32bn of government money, is a green bank that provides financing and loans to accelerate decarbonisation. Sign up to Breaking News Australia Get the most important news as it breaks after newsletter promotion Australia's retail sector accounts for half of the energy use of all commercial properties and 5% of the country's emissions. CEFC said the solar and battery installations could also help to stabilise the country's electricity grid. Storing solar electricity in batteries to use in evening peaks, for example, can help even out power demand at times of higher electricity use. The executive director at the CEFC, Richard Lovell, said: 'By focusing on using its existing building assets to support renewable energy generation and energy storage, which are crucial for energy demand management, Wesfarmers continues to execute its active decarbonisation strategy to reduce its direct emissions.' Bunnings, Officeworks and WesCEF all have targets to reach net zero direct emissions by 2030, and to use 100% renewable electricity by the end of 2025. Wesfarmers will also use part of the CEFC finance to fund a study at its chemicals, energy and fertiliser business, WesCEF, into decarbonising the production of sodium cyanide – a chemical used in gold production. Work to install and upgrade facilities at Bunnings and Officeworks sites is expected to be completed by the end of this year. Wesfarmers chief financial officer, Anthony Gianotti, said the company welcomed the backing of the CEFC. 'We have long managed our businesses with climate and carbon awareness and we are committed to continuing to take action to reduce our impact on the environment.'
