Laws to create a government company to hand out $10 billion for renewable energy passed the House of Representatives on Wednesday.
A crucial part of the Labor-Greens deal for the carbon tax, the Clean Energy Finance Corporation will provide financial backing for renewable energy start-ups that can’t get private backing.
But the corporation also will be forced to ensure a return on its investment ends up back in government coffers.
After four bills were considered by a house committee, including a dissenting report by coalition committee members, the legislation was approved by a majority in the chamber.
Committee chair MP Julie Owens said the government-owned corporation would use a “commercial filter” to ensure the government got a return “equivalent to the government bond rate” from its investments.
“The corporation will not replace the private sector or deter the private sector from making commercially sound investments,” she said.
“What it will do, through co-financing initially, is increase private sector involvement in a high-technology sector with a growth outlook.”
It will now go before the Senate for debate and if passed will likely become law by July.
