Clean Energy Finance Corporation

The Clean Energy Finance Corporation was established on 3 August 2012 by the Clean Energy Finance Corporation Act 2012 [External Site(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 [External Sitehas 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 and will facilitate a review of the CEFC Act after 1 July 2016.

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

Investment Mandate

The Clean Energy Finance Corporation Investment Mandate Direction 2016 (No. 2) came into effect on 10 Jan 2017 and contains benchmark rates of return and risk statements for the CEIF and for the CEFC general portfolio (excluding the CEIF).

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

Investment programEstablishedFunding allocationBenchmark rate of returnLink

Clean Energy Portfolio Investment

For all other investments other than those listed below.

3 Aug 2013 (Since inception) Balance of CEFC Special Account the Board is to target an average return of the five–year Australian Government bond rate +3 to +4 per cent per annum over the medium to long term as the benchmark return of the portfolio. Performance against this benchmark will be measured before operating expenses. CEFC Investments External Site

Sustainable Cities Investment Program

This program will invest in clean energy projects and businesses that provide productivity, accessibility and liveability benefits for cities.

11 Jan 2017 $1 billion over 10 years Sustainable Cities Investment Program External Site

Reef Funding Program

Clean energy projects and businesses that support delivery of the Government’s Reef 2050 plan.

11 Jan 2017  $1 billion over 10 years Reef Funding Program External Site

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 Corporation 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 as the benchmark return of the Clean Energy Innovation Fund. Performance against this benchmark will be measured before operating expenses. Clean Energy Innovation Fund investments External Site

 

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Contact information on this page: Funds and Superannuation Branch

Last updated: 12 October 2017