Legislation
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 Act sets out the Corporation’s purpose and functions and establishes arrangements for the Board, Chief Executive Officer and staff.
Purpose and Functions
The CEFC was established to facilitate increased flows of finance into the clean energy sector and to achieve Australia’s greenhouse gas emissions reduction targets.
The CEFC’s investment function, as described in the CEFC Act, is to make complying investments, directly and indirectly, in clean energy technologies. The CEFC Act defines complying investments as:
- clean energy technologies such as:
- energy efficiency technologies that are related to energy conservation or demand management technologies
- low-emission technologies as determined by the Board
- renewable energy technologies that are hybrid technologies that integrate renewable energy technologies.
- solely or mainly Australian-based as determined by the Board and consistent with the Investment Mandate
- not in a prohibited technology such as 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 are defined as responsible ministers under the CEFC Act. The 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 under the CEFC Act, approves payments.
Investment Mandate
Under the CEFC Act, the responsible ministers can provide directions about the performance of the CEFC’s investment function by issuing an Investment Mandate. The most recent Investment Mandate came into effect on 22 July 2023. The Investment Mandate contains matters set out in the CEFC Act including 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
- 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.
Board appointment and membership
The CEFC Board consists of the Chair and at least 4, and no more than 6, other members who are appointed by the responsible ministers. Members are appointed on a part-time basis for a maximum term of 5 years, with the possibility of reappointment. Section 16 of the CEFC Act specifies the appointment criteria for the Board.
Reviews
Past reviews
A Statutory Review of the CEFC was published in October 2018.
Further information
For queries regarding CEFC investments, or if you are seeking funding from the CEFC, please refer to the Clean Energy Finance Corporation website.
Queries on policy matters regarding the CEFC should be directed to the Department of Climate Change, Energy, the Environment and Water, which has the primary portfolio responsibility for the CEFC.
