The Australian Government has announced a $2 billion funding boost for the Clean Energy Finance Corporation (CEFC), aiming to accelerate Australia’s transition to renewable energy and bolster economic growth.
This investment, outlined in the Mid-Year Economic and Fiscal Outlook (MYEFO), is set to deliver cost savings to households and businesses while unlocking up to $6 billion in private sector investment.
Prime Minister Anthony Albanese described the initiative as a cornerstone of Labor’s vision for a “Future Made in Australia.”
He stated, “Labor’s plan for a Future Made in Australia is very clear: we want Australia to make more things here.”
“This boost to the Clean Energy Finance Corporation is expected to unlock around $6 billion worth of private sector investment, supporting local good well-paid jobs, energy security and economic growth.”
The CEFC, established in 2012 and hailed as the world’s largest green bank, has already facilitated over $4 billion in local investments in 2024 alone.
These projects, which span regional areas and critical industries, have generated more than 4,000 jobs and attracted $12 billion in private capital.
Minister for Climate Change and Energy Chris Bowen highlighted Australia’s renewable energy potential, emphasizing the country’s global advantage in solar, wind, and critical minerals.
“The world is shifting to net zero. That means there are big opportunities and big benefits for Australia, so long as it acts now,” he said.
Recent CEFC-backed projects include the Neoen Culcairn Solar Farm in New South Wales, expected to power 160,000 homes and inject $10 million into the local economy, and the Collie Battery Stage 2 in Western Australia, which is projected to create 150 construction jobs.
Albanese underscored the government’s commitment to leveraging natural resources for clean energy production, stating, “We are building Australia’s future, not taking Australia backwards.”
The CEFC has been pivotal in meeting Australia’s emissions reduction targets, contributing to an estimated 160 million tonnes of lifetime emissions savings since its inception.
The government’s latest investment also marks the first recapitalization of the CEFC’s general portfolio since its establishment.
The announcement follows a record $2 billion investment earlier this week in Australia’s aluminium industry, further underscoring the government’s focus on renewable energy and job creation in local manufacturing.
