The Gillard Government welcomes the in-principle agreement between the Boards of the Clean Energy Finance Corporation (CEFC) and Low Carbon Australia Limited (LCAL) to merge LCAL's energy efficiency program's staff, systems and platforms into the CEFC.
This merger is consistent with the Government's intention to expand the opportunities in energy efficiency financing and to capture LCAL's experience and expertise within the CEFC.
The CEFC and LCAL Boards are working proactively to ensure that the transition to a single entity is as smooth as possible and there is no hiatus in the market before the CEFC commences its investment function on 1 July 2013.
The CEFC is a $10 billion corporation dedicated to mobilising its own and private sector capital into renewable energy, low-emissions and energy efficiency projects and technologies in Australia. The CEFC was announced as part of the Government's Clean Energy Future Plan on 10 July 2011 and established by legislation on 3 August 2012.
LCAL, a Government-owned corporation, has been managing a small pilot energy efficiency investment fund since 2010. LCAL has developed innovative financing solutions and invested in projects that have boosted private sector investment in energy efficiency. LCAL's capital funding for this program is to be fully committed by 30 June 2013, by which time LCAL's investment function will be integrated into the CEFC.
The merger will maintain momentum achieved by LCAL in the market, and to allow the CEFC to build-on and scale-up the platforms developed by LCAL. The merger will give the CEFC immediate access to LCAL's energy efficiency investment pipeline and skilled staff.
LCAL has also played an important role in encouraging organisations to voluntarily reduce their emissions through the administration of Government's National Carbon Offset Standard Carbon Neutral Program. This successful program will continue. The Government will discuss arrangements for its future administration with stakeholders, the CEFC and LCAL.
All existing LCAL contracts and investment programs will remain in place and contacts for these programs will remain unchanged.
To facilitate a smooth merger and to ensure the transmission of the expertise and market relationships built by LCAL, the Government is pleased to appoint the Chair of LCAL, Mr Martijn Wilder AM, to the CEFC Board.
Mr Wilder has a distinguished career as a pioneer in the development of environmental and climate change and carbon finance law. A partner with Baker McKenzie, Mr Wilder co-founded the firm's Global Environmental Markets and Climate Change practice. He is also an adjunct professor of climate change law at the Australian National University.
The Government is also pleased to announce the appointment of Mr Paul Binsted to fill the final position on the CEFC Board. Mr Binsted has extensive experience in investment banking and other aspects of corporate financial advice. Mr Binsted's breadth of experience comes from his previous position as Managing Director and Joint CEO of Lazard in Australia and his previous roles with other investment banks, including Citigroup Australia.
Mr Wilder and Mr Binsted will commence their five-year terms on 1 February 2013.