The Australian government will establish The Low Emissions Technology Commercialization Fund of $1 billion to turbocharge investment in companies to develop new low emission technology. This fund will combine $500 million for Clean Energy Finance Corporation (CEFC) with $500 million from private sector investors.
The government will establish this fund in this term of the Parliament and is expected to earn a positive return for taxpayers. The government wants to focus on creating an environment for successful ideas to grow and not tax companies. The fund will help the innovators develop their intellectual property and reduce the risk of starting complex technology-focused start-ups.
Prime Minister Scott Morrison said the fund would support Australia's plan to reach net-zero by 2050, and it would also back early-stage companies to develop new technology. He also added that Australia could become a world leader in creating low emissions technology that is affordable and scalable.
According to Angus Taylor, Minister of Industry, Energy and Emission Reduction, this fund, with other initiatives like increased investment in establishing seven Clean Hydrogen Industrial Hubs around the country, brings the government's commitment to more than $21 Billion of public investment in low emission technologies by 2030.
The fund helps CEFC grow and maintain its position as the world's largest government-owned green bank. The CEFC has committed $9.5 billion across 220 large-scale projects and is driving $33 billion in new investment across the economy.