Submission: Net Zero Fund should fast-track REIP development

The Net Zero Fund is a new carveout of the National Reconstruction Fund, with $5 billion in public finance to deploy. The Department of Industry, Science and Resources consulted on priority areas for blended finance, and on which financial products are useful to companies and investors in this space.

Given the broader challenges that established industries are experiencing in transitioning, and those of budding green industries, IGCC believes that the Fund should address the toughest challenges that can unlock the biggest decarbonisation gains. The sector decarbonisation plans were released to provide more clarity to companies, investors and communities at the pace and scale of change that the Australian Government will help to facilitate across the economy. Now, this Fund should clearly articulate action towards those ends, linking policy and finance.

The Net Zero Fund should:

• Provide flexible finance for proven technologies which offer the most emissions reductions (and energy efficiency gains) in each circumstance.
• Coordinate financial support for common user infrastructure decarbonisation at the industrial precinct level.
• Coordinate finance for EV charging stations and electric rail, which many companies rely on to decarbonise, but which are common user infrastructure.
• Accelerate firmed renewable supply to decarbonise critical minerals.
• Ensure that finance is deployed in alignment with industrial decarbonisation goals, as outlined in the sector plans and in accordance with the Climate Change Authority’s sector pathways advice.
• Operate under an explicit net-zero mandate.
• Allow for more flexibility on commercial rates of return for public finance.
• Not provide finance towards Australian manufacturing in sectors that it cannot compete because of global market saturation.

Read the full submission.