The Australian government has announced a new fund to finance investment in low emissions technology including carbon capture and storage (CCS).
Australian Prime Minister Scott Morrison and Minister for Industry, Energy and Emissions Reduction Angus Taylor on Wednesday launched the Low Emissions Technology Commercialisation Fund.
The fund, which will be administered by the Clean Energy Finance Corporation (CEFC), will consist of 500 million Australian dollars (369 million U.S. dollars) each from the government and private investors.
"Our Plan to reach net zero by 2050 is an Australian one that's focused on technology not taxes and this Fund backs in Australian companies to find new solutions," Morrison said in a statement.
However, in order to establish the fund, the government must first pass legislation expanding the remit of the CEFC to allow it to invest in CCS.
Any move to legislate changes to the CEFC before the 2022 general election would likely be opposed by the opposition Labor party.
Mining magnate Andrew Forrest in October said CCS has failed "19 out of 20 times" and Australians should be skeptical about the technology.
In addition to CCS, the government identified low-emission steel and aluminium production as an emerging technology that would benefit from this new fund.
"The Fund will support Australian innovators to develop their intellectual property and grow their businesses in Australia," Taylor said.
"It will address a gap in the Australian market, where currently small, complex, technology-focused start-ups can be considered to be too risky to finance."
Editor: Galia
