Scott Morrison unveils $1bn climate tech investment fund in pre-election fight with Labor

Scott Morrison sets up a clash with Anthony Albanese, launching a $1bn investment fund for low-emissions technologies.

Scott Morrison, left, and Angus Taylor in a hydrogen-powered car at the Toyota test track in Melbourne on Tuesday. Picture: AFP

Scott Morrison will launch a $1bn investment fund to fast-track low-emissions technologies including carbon capture and storage and methane-reducing livestock feed, setting up a pre-election clash with Anthony Albanese over the ­government’s plan for net-zero emissions by 2050.

The low-emissions technology commercialisation fund will ­require legislation to pump $500m of seed capital into the Clean Energy Finance Corporation and the government is considering tying it to its stalled Grid Reliability Fund in a bid to wedge Labor months out from the election.

The Prime Minister said the fund, which would make venture capital investments in Australian start-ups and businesses and was expected to earn a positive return for taxpayers, would target firms struggling to access finance.

“We are backing Australian businesses by creating an environment for their successful ideas to thrive, in contrast to Labor’s approach to always wanting to tax success,” Mr Morrison said.

“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.

“Australia can become a world leader in creating low-emissions technology that is both affordable and scalable, helping get emissions down while creating jobs.”

The CEFC low-emissions technology fund will be anchored by $500m in seed capital from the government and $500m raised from the private sector. The fund will make venture capital ­investments, not grants nor loans, in Australian start-ups and ­businesses.

Labor has voted seven times in parliament against moves to ­expand the mandate of the Australian Renewable Energy Agency to back technologies such as carbon capture and storage and opposes the Grid Reliability Fund.

Senior government sources said that if Labor blocked the Low Emissions Technology and Grid Reliability funds, it would stand in the way of $1.5bn of new money to support low-emissions technologies and transmission for the uptake of renewables.

Opposition climate change spokesman Chris Bowen said on Sunday Labor would not support using ARENA and the CEFC to fund carbon capture and storage “because that’s diverting money away from renewable-energy ­installations”.

Mr Bowen said the government was putting “too much store in ­carbon capture” and was using it as “an excuse to avoid reducing emissions in other ways”.

Mr Morrison, who is campaigning in marginal and target electorates in Victoria this week, will step up attacks on Labor’s climate change record on Wednesday after pushing back against criticism of the government’s electric vehicle strategy, which will accelerate the rollout of charging and hydrogen-refuelling stations to support 1.7 million vehicles on Australian roads by 2030.

Launching the strategy on Tuesday alongside Liberal MP Katie Allen, who holds the marginal inner-Melbourne seat of Higgins, Mr Morrison said his electric vehicle plan allowed Australians to make their own choices.

Mr Morrison, who ahead of the 2019 election claimed Bill Shorten’s policy for electric vehicles to make up to 50 per cent of new car sales by 2030 would “end the weekend” said Labor wanted to tell “everybody what to do”.

“I think Australians have had enough of governments telling them what to do,” Mr Morrison said. “We’ve just been through two years of governments having to tell people what to do.

“For Liberals, that does not come easily. It’s not something we instinctively do, and it’s not something I think Australians want to see more of in the future.”

Mr Albanese, whose policy exempts electric vehicles from import tariffs and fringe benefits tax, said Labor would not take an electric vehicle target to the election, declaring Australians “would make their choice”.

“I think people will look at Scott Morrison today and this announcement and just shake their head and say, ‘what’s changed?’ ” Mr Albanese said.

“The truth is that all of the auto manufacturers are phasing out internal-combustion engines.

“There is a shift around the world to electric vehicles.

“We are falling way behind. And this is once again a government that was in denial about change, rather than shaping change in the interests of people.”

Energy Minister Angus Taylor, who travelled with the Prime Minister to the COP26 summit in Glasgow last week, said the Low Emissions Technology Commercialisation Fund would support “Australian innovators to develop their intellectual property and grow their businesses in Australia”.

“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,” Mr Taylor said.

“Together with other new initiatives, like the increased investment in establishing seven clean hydrogen industrial hubs around Australia, today’s announcement brings our commitment to more than $21bn of public investment in low emissions technologies by 2030.”