The Clean Energy Finance Corporation (CEFC) was established on 3 August 2012 by the Clean Energy Finance Corporation Act 2012 (CEFC Act). The CEFC is a corporate Commonwealth entity for the purpose of the Public Governance, Performance and Accountability Act 2013.
The CEFC independently invests, directly and indirectly, in clean energy technologies to facilitate increased flows of finance into the clean energy sector and facilitate the achievement of Australia’s greenhouse gas emissions reduction targets.
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, which assist the CEFC Board in meeting its operational objectives.
- Investment Mandate: the Minister for Finance and the Minister for Climate Change and Energy , 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;
- $11.5 billion in 2023 for the Rewiring the Nation Fund and the Powering Australia Technology Fund;
- Future credits to the CEFC Special Account can be made through additional appropriations of the Parliament.
- 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;
- renewable energy technologies, that are hybrid technologies that integrate renewable energy technologies and technologies that are related to renewable energy. solely or mainly Australian-based; and
- not in a prohibited technology – technology for carbon capture or storage (within the meaning of the National Greenhouse and Energy Reporting Act 2007), nuclear technology or nuclear power.
Responsible Ministers
The Minister for Finance and the Minister for Climate Change And Energy, as responsible Ministers, appoint members to the CEFC Board and issue directions about the performance of the CEFC’s investment function. The Minister for Climate Change and Energy, 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 Climate Change, Energy, the Environment and Water , which has the primary portfolio responsibility for the CEFC.
Investment Mandate
The Clean Energy Finance Corporation Investment Mandate Direction 2023 came into effect on 22 July 2023 and contains a benchmark rate of return and a risk statement for the:
- Clean Energy Finance Corporation (general portfolio);
- Rewiring the Nation Fund;
- Clean Energy Innovation Fund;
- Advancing Hydrogen Fund ;
- Powering Australia Technology Fund; and
- Household Energy Upgrades Fund.
The CEFC Investment Mandate is a legislative instrument, which is not subject to disallowance. Further information on the investment mandate can be found in the Explanatory Statement.
| Investment Program | Funding Allocation | Benchmark Rate of Return | Link |
|---|---|---|---|
Clean Energy Finance Corporation (general portfolio) Established 3 August 2013. For all investments other than the Rewiring the Nation Fund and the Specialised Investment Funds included in this table. | CEFC Special Account | The CEFC Board must target an average return of at least the five-year Australian Government bond rate + 2 to + 3 per cent per annum over the medium to long term | CEFC Investments |
Rewiring the Nation Fund Established 22 July 2023. Debt, equity or hybrid financing instruments will be used to invest in projects that rebuild, modernise and strengthen Australia’s electricity grids and energy systems. It is expected these objectives will be primarily achieved through investment in electricity transmission projects. The CEFC Board may seek and take into account advice from the Rewiring the Nation Office, the Australian Energy Market Operator and/or the Australian Energy Infrastructure Commissioner in respect its activities relevant to the Rewiring the Nation Fund. | Up to $19 billion | The CEFC Board must target an average return of at least the CEFC’s cost of the Rewiring the Nation functions over the medium to long term | Rewiring the Nation Fund |
Specialised Investment Funds | |||
Clean Energy Innovation Fund Established 1 July 2016. 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 Board shall consider and take into account the advice of the Australian Renewable Energy Agency (ARENA). | Up to $200 million | The CEFC 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. | Clean Energy Innovation Fund Investments |
Advancing Hydrogen Fund Established 2 May 2020. Concessional finance to support the growth of a clean, innovative, safe and competitive Australian hydrogen industry. In considering investment proposals under the Advancing Hydrogen Fund, the CEFC Board shall prioritise projects that promote the objectives of the National Hydrogen Strategy and that focus on one or more of the following:
| Up to $300 million | The CEFC 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. | Advancing Hydrogen Fund Investments |
Powering Australia Technology Fund Established 22 July 2023 Concessional finance to support the growth or expansion of clean technology projects, businesses and/or entities (of any form including, without limitation, companies and funds) to facilitate the development, commercialisation or take up of clean energy technologies. The CEFC Board must aim to leverage at least an amount equal to the Powering Australia Technology Funding Amount from the private sector across the portfolio of investments made under this fund. | Up to $500 million | The CEFC Board is to target an average return of at least the 5-year Australian Government bond rate +1 per cent per annum over the medium to long term. | Powering Australia Technology Fund |
Housing Energy Upgrades Fund Concessional finance to support the private sector to provide concessional loans to incentivise the uptake of clean energy technology measures for residential dwellings. The CEFC Board must aim to leverage at least an amount equal to the Household Energy Upgrades Funding Amount from the private sector across the portfolio of investments made under this fund. | Up to $1 billion | The CEFC Board is to target an average return of at least the 5-year Australian Government bond rate +0.5 per cent per annum over the medium to long term. | Housing Energy Upgrades Fund |
Note: Performance against the above benchmark rates of return will be measured before any concession charges, such as impairment or mark-to-market adjustments resulting from any concessional component.
Reviews
Past reviews
- A Statutory review of the CEFC Act was published in October 2018.
Future reviews
- The Government will undertake a review of the Corporation’s General Portfolio benchmark rate of return within three years.
