ABBOTT'S WAR ON WINDFARMS SPREADS TO SOLAR

Media Release

Mark Butler MP.

Shadow Minister for Environment
 Climate Change and Water

Date:  13 July 2015

Reports that Tony Abbott has instructed the Clean Energy Finance Corporation (CEFC) to stop investing in wind farms may only have scratched the surface of the Prime Minister's war on renewable energy. 

Labor understands the Finance Minister has issued a second revision to the CEFC investment mandate and that the ban on investing in windfarms has been extended to solar energy, including rooftop solar.  

These proposed changes go well beyond Tony Abbott's opposition to the aesthetic values of wind farms - it’s a wholesale attack on renewable energy.

Tony Abbott is broadening his assault on renewable energy technologies putting thousands of Australian jobs and billions of dollars in investment at even further risk. 

At the beginning of the year, the Minister requested the CEFC to increase its return rate while freezing its risk profile, contradicting the most fundamental tenet of financing that risk is directly related to rate of return. 

As that stunt failed to stem the flow of investment to the CEFC's projects, the Minister has now banned the CEFC from investing in wind and now solar. 

In addition, Labor understands the Government has asked again ordered the CEFC to increase its rate of return.  The Government must immediately release this directive. 

The Government is effectively blood-letting the CEFC since its attempts to abolish it have been fruitless. 

In the 2013-2014 financial year, the CEFC invested $900 million in Australian renewable energy projects, attracting an additional $3 billion in private investment. These projects have employed thousands of people, billions of dollars of investment and supported the development of Australia's renewable energy industry. 

The loans provided by the CEFC are being paid back to the Government at a rate of seven per cent, making money which is returned to the Budget bottom line. 

It's a win-win for taxpayers. 

This is the most blatant example of Tony Abbott's lack of vision for Australia’s future. The whole world is moving towards clean energy and Tony Abbott is scrambling to take Australia in the opposite direction.  

When will he understand the global momentum is out pacing him and he is dragging Australia back? 

Only Labor takes the challenge of climate change seriously and the need to grow our renewable energy sector.