Clean Energy Finance Corporation defies Government call to stop lending

Updated

The investment fund set up under Labor to encourage low emission technology and renewable energy projects has rejected a request from the Treasurer Joe Hockey to stop making new investments.

The announcement comes ahead of a key shadow cabinet meeting today at which Labor MPs will discuss their next move on the future of the carbon tax.

The Coalition's carbon price repeal policy includes provisions to dismantle the Clean Energy Finance Corporation (CEFC).

Mr Hockey is expected to introduce the legislation later this year and has asked the CEFC to stop lending in the interim.

However, the board and executive of the fund have decided to continue making investment decisions.

In a statement the CEFC says:

"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 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.

The statement says the CEFC expects to work with the government cooperatively to preserve the value of what's been achieved so far and minimise any disruption to the market.

Labor meeting over next carbon tax move

Shadow cabinet is meeting in Canberra today to discuss Labor's next move on the future of the carbon tax.

Bill Shorten's carbon tax dilemma

If Bill Shorten is to survive long term as the Labor leader, he will have to keep the party on the right side of the argument on carbon pricing, writes Barrie Cassidy.





If Bill Shorten is to survive long term as the Labor leader, he will have to keep the party on the right side of the argument on carbon pricing,

Prime Minister Tony Abbott wants to put the bundle of legislation to repeal the carbon price before parliament this year.

The Government needs support from Labor or the Greens to get the laws through the Senate.

Labor went to the election promising to dump the carbon tax and move to an Emissions Trading Scheme, but is unhappy with the Coalition's planned alternative policy, known as Direct Action.

Today's 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 referring to the Opposition Leader as "Bill Shock" Bill Shorten and has sought to make political mileage out of Labor's position 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 bills or amending them.

Opposition frontbencher Anthony Albanese says Labor will 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."

In a statement Joe Hockey says he has "requested the cooperation of the board" of the fund but he has also acknowledged the board has the legal right to make its own decisions.

Topics: alp, political-parties, government-and-politics, emissions-trading, business-economics-and-finance, pollution, environment, air-pollution, australia

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