Low Carbon Australia and Clean Energy Finance Corporation merge
The Boards of Low Carbon Australia Limited (LCAL) and the Clean Energy Finance Corporation (CEFC) have announced their in-principle agreement on the merger of LCAL's energy efficiency programs, staff, systems and platforms into the CEFC.
CEFC Chair Jillian Broadbent AO said "Working as one with the LCAL team will accelerate the speed with which the CEFC can build its operations. The organisational platform and the team's proven experience in energy efficiency activities will be an enormous asset to the CEFC."
LCAL has developed innovative models for financing energy efficiency and the CEFC is keen to build on the experience, expertise and market goodwill created by LCAL's pioneering work. LCAL will be a valuable resource for the CEFC in developing its own investments in the clean energy sector.
Since 2010, LCAL has been effectively working within the market place developing successful finance and investment models to boost private sector investment in energy efficiency. LCAL has contracted, or has under offer, more than $84 million of its funds. This, together with private sector co-financing, has made available over $200 million to cleaner energy in Australia.
The objective of the CEFC is to mobilise its own and private sector capital into renewable energy, low-emissions and energy efficiency projects and technologies. Investments in energy efficiency are expected to be an important part of the CEFC's investment portfolio. The $10 billion, commercially orientated CEFC will build on and scale-up successful LCAL models. Existing LCAL contracts and investment programs will remain in place.
The CEFC and LCAL Boards are committed to a seamless transition to one entity, with no loss of continuity in the market. This will facilitate the building of a pipeline of new investments by the CEFC from 1 July 2013.
It is intended that all aspects of the merger will be completed by 30 June 2013.