Uncertainty over the future of Australia’s renewable energy target under the Abbott government precipitated a 31% drop in clean energy investment in Australia, according to the annual report of the Clean Energy Finance Corporation.



The CEFC’s chair, banker Jillian Broadbent, noted in a foreword to the report that the 2014-15 financial year “saw an all-time record of around US$320bn of global investment in clean energy”.

By contrast, “Australian clean energy investment fell by 31%”.

“Uncertainty regarding the renewable energy target (RET) has negatively impacted investment in large utility-scale energy projects,” Broadbent said in the annual report, tabled in parliament out of session on Monday.

The Abbott government sought to gut the RET shortly after winning the 2013 federal election – triggering a political battle that raged unresolved for months and paralysed new investment in renewables.

Abbott also wanted to abolish the CEFC – an organisation he dubbed “Bob Brown’s bank” – but the plan thus far has been blocked by the senate.

More recently, the new prime minister Malcolm Turnbull, despite his historically strong support for renewable energy, has refused to say unequivocally that he backs the CEFC.

Turnbull told parliament late last month the Coalition did “not support government banks performing roles that can be performed by the private sector”.

He acknowledged (the CEFC) had “done some good work, the question is whether it is an appropriate use of government money”.

Under new administrative orders following the change of prime minister, the CEFC was transferred to the environment department, and the government has begun to warm up on investments in wind farms and small scale solar.

The CEFC chair has used the occasion of the annual report to highlight the achievements of the organisation despite the considerable policy uncertainty, and also underscore the importance of a diverse energy mix for Australia.

“It is important that Australia has a range of energy options for the future. Innovation and investment are vital to long-term productivity growth, broadly and particularly in energy,” Broadbent says in the report.

“Worldwide, the energy sector is undergoing a transition that will result in a diversity of cleaner and smarter technologies and more distributed generation,” she says.

“This presents opportunities and challenges for the Australian economy in our areas of natural competitive advantage, of which renewable energy and innovation are an integral part.”

Broadbent reported the corporation made new investments of $484m million during the financial year and “has continued to grow and diversify its portfolio, to a total committed portfolio of approximately $1.2bn as at 30 June 2015”.

“All investments are performing to our satisfaction,” she said.

She made a pitch for the organisation to continue its work. “The CEFC continues to demonstrate its ability to contribute to the economic transition and diversity of Australia’s energy mix, and to effectively and collaboratively work with a diverse range of businesses and investors.”

“Mobilisation of public and private sector investment (into renewable energy, energy efficiency and low emissions technologies) can provide important opportunities for economic growth and productivity in Australia.”

Broadbent was also positive about the administrative transfer to the environment portfolio. “We welcome this, and the enhanced opportunity to coordinate with other environment portfolio initiatives and with our responsible ministers.”