Antinuclear

Grave financial cost of shutting down Clean Energy Finance Corporation

Clean Energy Finance Corp warns shutdown will hit budget ABC News 27 Nov 13  The Clean Energy Finance Corporation (CEFC) has warned that the Federal Government’s plan to shut it down could cost the budget hundreds of millions of dollars. The Corporation was set up by the previous government to invest up to $10 billion in renewable energy projects and to help attract private sector investment.

The Coalition wants to shut it down, but Labor and the Greens have vowed to use their numbers in the Senate to block the move.

CEFC chair Jillian Broadbent says the fund has so far invested $500 million, which will help cut greenhouse gas emissions.She told a Senate hearing the fund’s contribution could be very significant if it was allowed to invest the full $10 billion, while at the same time returning $200 million per annum to government coffers.

“This would contribute more than 50 per cent of the emissions abatement that’s required for the bipartisan 2020 target,” she said.”And it would be done so with a $200 million per annum return to the taxpayer after having covered the operating costs.”……

She went on to say that the Government’s replacement direct action plan, in which companies and landholders bid for funding for emissions reduction projects, will have a net cost to the taxpayer.

“We’re investing and trying to develop the market’s appetite for participating in this field,” she said.”Grants have a very different role, and when you’re investing, you’re going to get the funds repaid and you’re earning a return on your money.

“Making a grant is just a straight expense. http://www.abc.net.au/news/2013-11-26/clean-energy-finance-corp-warns-of-budget-cost-of-shutdown/5118212

November 27, 2013 - Posted by Christina Macpherson | General News