Australia's Green Bank makes record clean energy investments of $2.3 billion

Australia's Green Bank announced on Monday that it had invested A$3.5 billion (2.29 billion dollars) in clean energy and grid infrastructure projects during the last financial year. This was to help accelerate Australia's transition away from fossil fuels towards renewables.

Why it's important

Australia is one of the most polluting countries in the world due to its coal-powered power generation. It has committed to closing all coal-fired power stations by 2038, and to achieving a target of 80% renewable energy by 2030.

Analysts have called for greater investment to achieve this goal and ensure energy security.

Wood Mackenzie estimates that Australia will only reach 58% of its energy needs from renewable sources by the end decade.

By the Numbers

Clean Energy Finance Corporation (CEFC), Australia's A$32,5 billion green bank, is mandated to "facilitate increased flow of finance into clean energy sectors and to facilitate Australia's greenhouse-gas emission reduction targets".

In the financial year 2024-25, it invested A$4.7 billion in renewable energy projects, and A$3.5 billion for grid infrastructure.

CEFC stated that it was "record-breaking" investment, and doubled the amount from the previous fiscal.

The largest transaction involved A$2.8 billion, which was used to fund a program for improving Australia's power grid. A$2.1 billion of that amount went towards the construction of a new transmission link along Australia's east coastline.

KEY QUOTES

The CEFC announced that it would increase its investment in clean energy, to assist Australia achieve its renewable energy and emission targets.

Ian Learmonth, CEO of the Australian Renewable Energy Association (ARENA), said that Australia needs to continue investing in renewable energy and long-term storage. Clean energy must be affordable for consumers as well as measures taken to reduce emissions.

"Investment activity of this scale promises substantial local employment and economic benefits throughout Australia. It strengthens our economy in preparation for a future net zero while making crucial progress towards decarbonisation." (1 Australian dollar = 1.5267 dollars) (Reporting from Sydney by Christine Chen; Editing by Kate Mayberry

(source: Reuters)