Despite the Clean Energy Finance Corporation’s (CEFC) hopesthat it may have a role to play under Australia’s new conservative Liberal-National government the coalition has taken steps to dismantle the “green bank” on its first day in office.
The Treasurer Joe Hockey has written to the CEFC board seeking their co-operation while the government implements its promise to wind back the government-owned body tasked with investing $10 billion in clean energy.
Mr Hockey has written to the CEFC requesting the cooperation of its board in suspending all further investments.
At the same time the Australian Conservation Foundation (ACF) has released legal advise it has received which is says shows the CEFC is obliged by law to continue its work of investing in renewable energy.
The ACF says it and The Environment Defenders Office Victoria have received legal advice from Stephen Keim SC on whether or not the CEFC’s operations, which are established by law, can be stopped by the direction of a Minister.
ACF climate change program manager Tony Mohr said the advice was clear that the CEFC must keep investing in clean technology unless or until there was legislation that changed its functions.
“We call on the federal government to respect the law and not attempt to stop the CEFC from continuing its good work.
“The CEFC is helping emerging technologies such as solar thermal, geothermal and wave power graduate from universities and research centres into a clean, national electricity market,” Mr Mohr said.
The Australian Greens Party has strongly criticised the move by Mr Hockey as illegal, saying the coalition could not instruct the $10 billion CEFC to act against its legislated mandate.
The ACF says Mr Keim’s advise states in part; “The CEFC’s activities cannot be terminated by executive action.”
The corporation has agreed not to approve any new investments but will continue meeting its existing legal and contractual obligations.
AAP Newsagency reports Treasury has been instructed to start working on draft legislation to shut down the CEFC.
However, its CEO Oliver Yates has suggested the corporation could possibly be useful as the coalition government shifts to its Direct Action climate change policy.
“The CEFC wishes to engage in consultations about the transition and looks forward to engaging with the new government concerning how its activities can best be supportive of their policy priorities under Direct Action,” Mr Yates told AAP in a statement.
He hoped the legal obligations of all parties were met during any transition and “all efficiencies and opportunities available during this time are realised”.
Australian Greens senator Richard Di Natale said the CEFC had been legislated to invest its funds and telling them to do otherwise without new laws in place showed a “complete disregard for the parliament”.
“The fact that Tony Abbott believes he can instruct an independent statutory body to act against its legislated mandate shows arrogance and hubris,” Senator Di Natale said in a statement.
The CEFC was set up under the former Labor government’s carbon price legislation, and assigned $10 billion over five years to support renewable energy projects through loans, guarantees and equity investments.
The corporation said it had invested $500 million on projects worth $2 billion, meaning it had generated four times its own outlay, and had no adverse impact on government net debt.
Some advocates of clean energy have expressed concerns that investment and jobs in the sector will stall without the certainty of funds provided the CEFC.
One Response
How was it legal to take 10 Billion Dollars of Tax payers money and speculate on ‘green’ companies?
No-one i talk to has even heard of the CEFC or the 10 Billions Dollars they took from us….ala the Midnight Oil song – ‘it belongs to us – so give it back’…haha – you criminal CEFC lacky’s give our money back or the class action lawsuits will start flying….