The investment body set up under Australia’s previous Labor government to encourage low emission technology and renewable energy projects has rejected a request from the Liberal-National government Treasurer Joe Hockey to stop making new investments.
The announcement by the Clean Energy Finance Corporation (CEFC) comes ahead of a key shadow cabinet meeting today at which Labor members of parliament will discuss their next move on the future of the country’s carbon price legislation.
The conservative coalition government’s carbon price repeal legislation, to go before the next sitting of federal parliament, includes provisions to dismantle the CEFC.
Mr Hockey is expected to introduce the legislation later this year and had asked the CEFC to stop lending in the interim.
ABC News report the board and executive of the fund have decided to continue making investment decisions.
In a statement the CEFC said: “Until legislation is passed, the CEFC is required by law to fulfil its responsibilities under the legislative framework in which it operates.
“This includes performing our investment function and therefore we are continuing to progress investment proposals.”
The CEFC, established about 18 months ago, has already invested more than half a billion dollars in low emissions projects.
The annual report for the last financial year says every dollar of investment has attracted $2.90 in private sector spending.
ABC News reports the statement said the CEFC expected to work with the government cooperatively to preserve the value of what’s been achieved so far and minimise any disruption to the market.
Meanwhile, the Labor shadow cabinet is meeting in Canberra today to discuss Labor’s next move on the future of the carbon price laws.
Conservative Liberal-National Prime Minister Tony Abbott plans to put the bundle of legislation to repeal the carbon price before parliament this year.
ABC News reports the government needs support from Labor or the Australian Greens Party to get the laws through the upper house Senate.
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abor went to the recent federal election promising to move from the current fixed carbon price to an Emissions Trading Scheme (ETS) a year earlier than originally planned.
Under the current legislation Australia’s fixed price reverts to a market based ETS, linked to the European Union’s ETS, in July 2015
While Labor seems happy to abandon the current fixed price, its insists there must be a price on carbon and is also unhappy with the government’s planned alternative policy, known as Direct Action.
The shadow cabinet meeting is expected to canvas the party’s options as the government continues to apply political pressure for a decision.
Mr Abbott has been pressuring the Opposition Leader Bill Shorten and has sought political advantage by telling voters the repeal legislation will save consumers hundreds of dollars each year.
One of the options open to Labor is for negotiations with the government about splitting up the repeal bills or amending them.
Opposition infrastructure spokesman Anthony Albanese said Labor would stay true to its principles on climate change.
“Labor knows that a market-based mechanism is the cheapest way of reducing our emissions,” Mr Albanese said.
“Any response that we have to the government legislation will be consistent with those principles,” he added.
