(Transcript from SBS World News Radio)
The federal government says a decision to ban government investment in wind and small-scale solar energy technologies won't undermine investment and development in the renewable energy industry as a whole.
The government has ordered the 10 billion dollar Clean Energy Finance Corporation not to make any new investments in wind power and small solar energy projects sparking an outcry from green groups and the Labor party.
But, as Amanda Cavill reports, Prime Minister Tony Abbott is defending the policy.
(Click on the audio tab above to hear the full report)
The Clean Energy Finance Corporation has been ordered to focus on new technologies instead of wind farms and small scale solar under a revised mandate drafted by the government.
But it says the CEFC will be actively pursuing large scale solar projects and an important part of the renewable energy mix.
The government says the change comes as part the deal over the renewable energy target reached with Senate crossbenchers in June.
Prime Minister Tony Abbott says the plan was always to abolish the corporation but as long as it exists it might as well be as useful as possible.
"Well, you know it is our policy to abolish the Clean Energy Finance Corporation because we think that if the projects stack up economically, there's no reason why they can't be supported in the usual way. But while the CEFC exists, what we believe it should be doing is investing in new and emerging technologies - certainly not existing wind farms."
The CEFC was set up by the Gillard government in 2012.
The corporation mobilises capital investment in renewable energy, low-emission technology and energy efficiency in Australia.
Opposition leader Bill Shorten says the corporation's original purpose was to develop a mature lending market that would eventually encourage private banks to invest in renewable energy.
Mr Shorten says the corporation, which the government has twice tried to scrap, is being set up to fail, after again been asked to increase its rate of return but not increase its risk profile.
And he says it's just another attack by the Prime Minister on renewable energy technologies.
"It beggars belief that when all Australians know the importance of renewable energy - wind farms, solar power - that somehow Tony Abbott is so stuck in the past that he wants to starve funding for new projects. I do not understand why Mr Abbott wants to jeopardise thousands of jobs, billions of dollars of investment. Why is Mr Abbott so stuck in the past that he's fighting so hard against the jobs and the industries of the future?"
Deputy Greens Leader Scott Ludlum says the the move is designed to shore up the environmentally damaging coal and gas industries.
Senator Ludlum says wind and solar technolgies have already proved that they can provide an alternative and effective source of energy - and that's not what the government wants.
"This is the Prime Minister that has done everything to handcuff our country to the coal and gas industry, doing everything he can to wipe out a low cost competitor. It's a form of I think incredibly dangerous and vindictive industrial sabotage. They are trying to knock over the wind energy sector not because it is too high cost and not because it can't compete but because it's competing a little bit too well."
The government directive to the CEFC prevents further investments in wind and small scale technologies, but the corporation is not required to divest existing investments.
The corporation and the energy giant Origin earlier this month signed a 12-year, $100 million deal that involves Origin owning, installing and maintaining solar photovoltaic systems on the roofs of household and business customers.
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