Australia’s green bank makes record A$3.5b in clean energy investments

[SYDNEY] Australia’s green bank on Monday (Jul 28) said that it invested a record A$3.5 billion (S$2.9 billion) in clean energy projects and grid infrastructure in the last financial year to accelerate the country’s transition from fossil fuels to renewables.

Australia’s coal power generation makes it one of the highest polluting countries per capita in the world. It plans to shut all coal stations by 2038 and has pledged to achieve a target of 82 per cent renewable generation by 2030.

But analysts have called for increased investment to meet this goal, achieve net-zero emissions by 2050 and ensure energy security.

Wood Mackenzie projects that Australia is on track to hit only 58 per cent of renewable energy generation by the end of the decade.

The Clean Energy Finance Corporation (CEFC), Australia’s A$32.5 billion green bank, has a mandate to “facilitate increased flows of finance into the clean energy sector and to facilitate the achievement of Australia’s greenhouse gas emissions reduction targets”.

During the 2024-25 financial year, it committed A$4.7 billion, including A$3.5 billion to renewable energy projects and grid infrastructure.

The CEFC said it was a “record” level of investment and more than double the amount of the previous fiscal year.

The largest transaction was A$2.8 billion towards a programme to improve Australia’s national power grid, including A$2.1 billion for construction of a new electricity transmission link on the country’s east coast.

The CEFC said it was ramping up investment in clean energy to help Australia meet its renewable energy and emissions targets.

“Australia requires ongoing investment in renewables and long-duration storage, clean energy affordability for consumers and measures to cut emissions,” CEO Ian Learmonth said.

“Investment activity at this scale promises substantial economic and local employment benefits across Australia, strengthening our economy for a net-zero future while making critical progress towards decarbonisation.” REUTERS