A new billion dollar fund to boost investment in Australian companies developing emerging low-emission technologies will be established by the federal government as part of its efforts to reduce greenhouse gas pollution and decarbonize economy by 2050.
Prime Minister Scott Morrison, who put the coalition on the campaign trail on Tuesday starting with a four-day tour of Victoria, will unveil a low-emission technology commercialization fund on Wednesday, which will combine $ 500 million in new capital for the Clean Energy Finance Corporation. with $ 500 million from private sector investors.
The fund will target early-stage technologies with the potential to close the net-zero gap with venture capital investments – not grants or loans – in Australian start-ups and innovative companies to help them grow. grow and develop. The government expects to get $ 3 to $ 5 for every dollar invested, or up to $ 126 billion in public and private investment over a decade.
Amid fierce criticism from the federal opposition and climate advocates that the government is not doing enough to meet its international obligations, Mr Morrison said the program was designed to fill a gap in the Australian market, where small tech-driven start-ups are often considered difficult to finance.
“Australia can become a world leader in creating low emissions technologies that are both affordable and scalable, helping to reduce emissions while creating jobs,” he said.
“We support Australian businesses by creating an environment for their successful ideas to thrive, unlike Labor’s approach which always wants to tax success.”
Examples of technologies that could be supported include direct air capture and storage of carbon dioxide powered by renewable energy, soil carbon measurement technologies, livestock feed innovations with the potential reduce methane emissions from livestock and improvements to solar panels.
However, the new policy could spark a new political fight, as the additional funding will require new legislation. As part of the package, the government will allow CEFC to invest in carbon capture and storage – a priority and controversial technology under the government’s roadmap for technology investment.