Clean Energy Finance Corporation signals it may accelerate reinvestment

(The Guardian, 31 Oct 2018) Steven Skala flags potential asset recycling to ensure there is ‘no significant constraint’ on investment capacity.

The Clean Energy Finance Corporation has signalled it may accelerate reinvestment in clean energy projects to help plug gaps in the market.

In the CEFC’s annual report, tabled in federal parliament on Wednesday, the chairman of the organisation, the investment banker and company director Steven Skala, flagged potential asset recycling to ensure there is “no significant constraint on … investment capacity”.

The CEFC – a government body mobilising capital investment in renewable energy, low-emission technology and energy efficiency – reported it had made cumulative investments of more than $6.6bn, comprised of loans and equity.

The organisation’s investments recoup costs plus a margin – it does not allocate grants. The organisation had a budget of $10bn, with $4.7bn remaining.

Skala declared that decarbonisation was inevitable, despite the fact the Morrison government dumped the national energy guarantee’s emissions reduction target after Malcolm Turnbull lost the leadership, fuelling concerns the lack of policy certainty could slow the pace of transformation in the energy market.

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The Guardian, 31 Oct 2018: Clean Energy Finance Corporation signals it may accelerate reinvestment