The Low emissions Technology Commercialisation Fund will combine $500 million of new capital for the Clean Energy Finance Corporation, from the government, and $500 million from private sector investors.
The investment will target early stage technologies that have the potential to close the gap to net zero with venture capital investments – not grants or loans – in up and coming and innovative businesses to assist growth and scaling up.
Modernised solar panels, more efficient batteries, livestock supplements and underground storage could all be funded by the investment.
Prime Minister Scott Morrison has made a $1 billion pledge to assist start-ups and businesses to find emerging technologies to reduce greenhouse emissions and help Australia reach net zero by 2050. Picture: NCA NewsWire / David Geraghty
Mr Morrison said he had to “secure Australia’s place” in the new energy economy as countries with net zero commitments now cover 80 per cent of the world’s gross domestic product and 90 per cent of Australia’s exports are to those nations.
“The world does not need to be punished for climate change, we just need to fix it,” he said from Victoria on Wednesday as he announced the funding.
“And it will be fixed painstakingly step-by-step by entrepreneurs by scientists, by technologists, by innovators, by industrialists, by financiers, by risk takers.
“That is the Australian way. That’s the way I have been championing on the world stage.”
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Mr Morrison said the scheme was designed to fill a gap in the country’s market where small start-ups are usually difficult to finance.
“Australia can become a word leader in creating low-emissions technology that is both affordable and scalable, helping get emissions down while creating jobs,” he said earlier.
“We are backing Australian businesses by creating an environment for their successful ideas to thrive in contrast to Labor’s approach to always wanting tax success.”
Other key technologies that could be boosted by the fund include direct air capture of carbon, soil carbon measurement tools, and materials to produce green steel and aluminium.
Modernised solar panels, more efficient batteries, livestock supplements and underground storage could all be funded by the investment that will be announced on Wednesday. Picture: Getty
The Morrison government has pledged a total of $21 billion in low emissions technologies this decade.
It is expected to pull in a further $100 billion in private investment and create up to 160,000 new jobs by 2030 with more than half of those in regional areas.
Australia was ranked last out of 60 countries in its response to climate change in Glasgow.
A lack of policies, high per capita green house emissions, low levels of renewables and high levels of energy use saw the country given an overall ranking of 54 among individual countries.
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Mr Morrison is on a media and campaign blitz ahead of the election, likely six months away, where he announced his plan to encourage more Australians to buy electric vehicles.
The Prime Minister pledged he “will not be forcing Australians out of the car they want to drive” as the government looks to accelerate the rollout of 50,000 charging stations to encourage more people to buy electric vehicles.
“Australians love their family sedan, farmers rely on their trusted ute and our economy counts on trucks and trains to delivers goods from coast to coast,” Mr Morrison said.
“We will not be forcing Australians out of the car they want to drive or penalising those who can least afford it through bans or taxes. The strategy will work to drive down the cost of low and zero emission vehicles, and enhance consumer choice.”
“We will do this by creating right environment for industry co-investment in technology development.”
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He said the plan was designed to avoid taxes and “offer choices not mandates” as electric vehicle prices slowly fall in line with rising demand.
The plan does not include subsidies, tax incentives, sales targets or minimum fuel emission standards that would make electric vehicles more affordable, industry groups have said.
Mr Morrison hopes Australians will embrace electric vehicles like they have with rooftop solar.
More than 1.7 million electric vehicles are expected to be on the road by 2030.

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