The Australia Institute made a submission to the Department of the Environment and Energy as part of the Clean Energy Finance Corporation Statutory Review.
This submission makes five main points regarding the CEFC relating to the two key issues for consideration by the Department, being: the effectiveness of the CEFC in facilitating increased flows of finance into the clean energy sector; and any other matters considered relevant to the operation of the CEFC Act more generally:
- The CEFC has made a positive contribution to the market.
- Policy makers should consider increasing the CEFC Special Account to $30 billion
- The return hurdle should be returned to the original expectation of cost recovery, rather than the cost of funding plus 3-4%
- The CEFC should consider using a greater amount of concessionality to support innovative and emerging technologies and renewable energy zones
- Governments should not, through the investment mandate, be able to allocate the portfolio to particular programs.