Clean Energy Finance Corporation

The Clean Energy Finance Corporation was established on 3 August 2012 by the Clean Energy Finance Corporation Act 2012 (CEFC Act). The CEFC is a corporate Commonwealth entity that facilitates increased flows of finance into the clean energy sector. 

Legislation

The CEFC Act gives effect to the following:

  • Establishment of Government bodies: the Clean Energy Finance Corporation Board (CEFC Board), and the Clean Energy Finance Corporation (CEFC);
    • the CEFC Board has the responsibility for decision making and managing the CEFC's investments; and
    • the CEFC will assist the CEFC Board in performing operational activities to facilitate increased flows of finance into the clean energy sector.
  • Investment Mandate: the Finance Minister and the Environment and Energy Minister, as responsible Ministers are required to issue an Investment Mandate (detailed below).
  • Crediting amounts to CEFC: section 46 of the CEFC Act has provided credits of $2 billion each year from 1 July 2013 to 1 July 2017, totalling $10 billion. 
  • Complying investments: in any one or more of the following;
    • energy efficiency technologies, that are related to energy conservation or demand management technologies; 
    • low-emission technologies; and
    • renewable energy technologies, that are hybrid technologies that integrate renewable energy technologies and technologies that are related to renewable energy.
  • Restrictions on investments: Investments must be in clean energy technologies that are solely or mainly Australian based, and not in a prohibited technology - such as carbon capture and storage, nuclear technology and nuclear power. 

Responsible Ministers

The Finance Minister and the Environment and Energy Minister, as responsible Ministers, appoint members to the CEFC Board. The Environment and Energy Minister, as the nominated Minister, approves payments.

For queries regarding CEFC investments, or if you are seeking funding from CEFC, please refer to the Clean Energy Finance Corporation website. Queries on policy matters regarding the CEFC should be directed to the Department of the Environment and Energy, who have the primary portfolio responsibility for the CEFC.

Investment Mandate

The Clean Energy Finance Corporation Investment Mandate Direction 2018 came into effect on 15 December 2018 and contains a benchmark rate of return and a risk statement for:

  • the Clean Energy Finance Corporation (general portfolio); and
  • the Clean Energy Innovation Fund.

The CEFC Investment Mandate is a legislative instrument, which is not subject to disallowance.

Investment Program Established Funding Allocation Benchmark Rate of Return Link

Clean Energy Finance Corporation (general portfolio)

For investments other than the Clean Energy Innovation Fund.

3 Aug 2013 CEFC Special Account The Board is to target an average return of at least the five-year Australian Government bond rate +3 to +4 per cent per annum over the medium to long term. Performance against this benchmark will be measured before operating expenses. CEFC Investments 

Clean Energy Innovation Fund

Debt and equity investment in emerging clean energy technology projects and businesses that involve technologies that have passed beyond the research and development stages but are not yet established or of sufficient maturity, size or otherwise commercially ready to attract sufficient private sector investment.

In considering investment proposals under the Clean Energy Innovation Fund, the CEFC shall consider and take into account the advice of the Australian Renewable Energy Agency (ARENA).

1 Jul 2016 $200 million The Board is to target an average return of at least the five–year Australian Government bond rate +1 per cent per annum over the medium to long term. Performance against this benchmark will be measured before operating expenses. Clean Energy Innovation Fund Investments 

Investments within the CEFC (general portfolio)

Two investment programs were established on 11 January 2017, each with a funding allocation of $1 billion over 10 years. They form part of the CEFC (general portfolio) and are assessed against its benchmark rate of return:

Sustainable Cities Investment Program

  • The Sustainable Cities Investment Program was established to invest in clean energy projects and businesses that provide productivity, accessibility and liveability benefits for cities.
  • Sustainable Cities Investment Program 

Reef Funding Program

  • The Reef Funding Program was established to invest in clean energy projects and businesses that support delivery of the Government’s Reef 2050 plan.
  • Reef Funding Program

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