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CEFC slows funding flow

05 March 2014 4:38PM
Data submitted to a Productivity Commission inquiry shows the Clean Energy Finance Corporation has invested only a further $30 million or so since last September's Federal election.The CEFC provided the data in a submission to the Productivity Commission inquiry looking at ways to bring down the cost of infrastructure. It showed the CEFC has invested A$536 million so far and attracted $1.55 billion in private sector co-financing. It said it had "a strong forward pipeline of viable investment opportunities in energy efficiency and emissions reduction."An Australian government owned and funded financier set up by the last Labor government, the CEFC no longer enjoys political support from the new government and will be scrapped if Parliament agrees. A bill to this effect failed in the Senate before Christmas.The CEFC told the Productivity Commission it had "stimulated co-financier's appetite and risk understanding, utilised financial aggregation, and attracted new off- shore investors to catalyse investment activity. In addition, the CEFC is helping investment in new areas, using specialist skills which are not readily available in the Australian market."The financier also asserted that it was "meeting a financing gap for investment and growth by the SME sector."The CEFC also supported "establishing an Infrastructure Bank" that with "a tight charter and a commercial board … should be capable of investing profitably and delivering on its mission at minimum cost to the government."The CEFC said that its present portfolio of projects "delivered approximately four million tonnes of CO2 abatement, and achieved it at negative cost of $2.40 per tonne of abatement."

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