The Low Emissions Technology Commercialisation Fund is designed to back Australian early-stage companies. It will combine $500 million of new capital for the Clean Energy Finance Corporation (CEFC) with $500 million from private sector investors.
The fund has been announced on the back of the Prime Minister’s recent announcement that it planned to reach net zero by 2050 through technology not taxes.
“Australia can become a world leader in creating low emissions technology that is both affordable and scalable, helping get emissions down while creating jobs,” Mr Morrison said. He added that they are “backing Australian businesses by creating an environment for their successful ideas to thrive”.
Meanwhile, Angus Taylor, Minister for Industry, Energy and Emissions Reduction, said the fund will address a “gap in the Australian market” where small, technology-focused start-ups can be considered too risky to finance.
“The Fund will support Australian innovators to develop their intellectual property and grow their businesses in Australia,” he said.
The government said it will introduce legislation to establish the fund in this term of parliament and that is it expected to earn a positive return for taxpayers.
Solar power milestone
The announcement comes as Australia marks the installation of 3 million solar systems across the country, contributing 7 per cent of energy going into the national electricity grid.
“Australia’s 3 million rooftop solar installations are reducing Australia’s emissions by over 17.7 million tonnes in 2021 and will only increase in the future. More than one in four houses and many non-residential buildings have installed small-scale rooftop solar,” said Mr Taylor.