The CEFC: wrong answer to the right question

The Clean Energy Finance Corporation will effectively be putting the cart before the horse – but there is a solution.

We need to develop a portfolio of low carbon technologies that, in combination, give us a good chance of meeting our future energy needs affordably with close to zero emissions. But the Clean Energy Finance Corporation (CEFC), at least as currently envisaged, is the wrong response.

The reason renewable energy projects aren’t being progressed in Australia at the scale required has very little to do with inadequacies of the financial markets, nor the absence of a carbon price. The problems are far more fundamental.

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