Clean Energy Finance Corporation

www.cefc.com.au

[South Australia, Neoen expands Hornsdale Power Reserve big battery, CEFC web site]

The CEFC has a unique role to increase investment in Australia’s transition to lower emissions. We invest to lead the market, operating with commercial rigour to address some of Australia’s toughest emissions challenges – in agriculture, energy generation and storage, infrastructure, property, transport and waste. We’re also proud to back Australia’s cleantech entrepreneurs through the Clean Energy Innovation Fund. In investing $10 billion on behalf of the Australian Government, we work to deliver a positive return for taxpayers across our portfolio.

https://www.cefc.com.au/who-we-are/about-us/

The CEFC catalyses private sector investment in the nation’s clean energy sector and we are governed by an independent Board that reports to the Australian Parliament through our responsible ministers.

We are a corporate Commonwealth entity working within the governance regime of the Public Governance, Performance and Accountability Act 2013 (Cth) (The PGPA Act).

The CEFC facilitates investment in new clean energy businesses and projects, which the private sector has been reluctant to fund due to the risk profile. The CEFC does so in partnership with private finance, using its investment to attract other capital and reduce the risk profile of new investments.

In its first four years of operation, the CEFC committed $4.3 billion across 79 transactions with a total project value of $11 billion. Importantly, each dollar of CEFC investment 2016-2017 was matched by more than $2 from the private sector.

In addition, unlike grant programs that negatively impact the budget the CEFC generates a rate of return for the Australian taxpayer.

The CEFC does not seek to displace the private sector; it will look to address instances where high barriers to finance exist for manufacturers. Investment by the CEFC lowers the risk profile of projects, which in turn attracts private capital.

The does not issue direct cash grants to manufacturers. Rather, offers financing arrangements including, but not limited to, equity, concessional loans and loan guarantees. CEFC investment decisions are guided by a public policy objective, and constrained by a clear investment mandate.
[Adapted from Labour’s policy on a Future Manufacturing fund for the 2019 election, to be modelled on the CEFC. See ‘Science, Technology and Manufacturing page].

CEFC videos: https://www.cefc.com.au/market-insights/videos/

Sample Video ‘Investing in Australia’s Clean Energy Transition’ https://youtu.be/VmYfGhbtffLY

Investment programs

https://www.cefc.com.au/where-we-invest/about-our-finance/investment-programs/

Sustainable cities

The $1 billion Reef Funding Program is financing

Through the Sustainable Cities Investment Program, the CEFC invests to accelerate the development and deployment of a broad range of clean energy projects in Australia’s 50 largest cities, from Alice Springs with 25,000 people to Sydney, Australia’s largest city, at some 5.1 million people.

In its first three years the Sustainable Cities Investment Program exceeded its $1 billion investment target, with the CEFC committing almost $2.9 billion to some 5,000 Sustainable Cities opportunities at 30 June 2019. This represents total new investment of almost $8.8 billion alongside the private sector. Given the emissions opportunities in Australia’s cities, the CEFC expects to continue to invest in cities-related opportunities.

Reflecting the diverse and vibrant nature of our cities, finance can be used across the urban environment to deliver clean energy benefits to commercial, industrial and residential property; low emissions transport and energy efficient large-scale economic infrastructure; as well as local government, educational and community assets.

Reef funding program

The $1 billion Reef Funding Program is financing clean energy projects in the Great Barrier Reef Catchment Area and supporting delivery of the Reef 2050 plan. The CEFC finances clean energy opportunities in a broad range of sectors in the Great Barrier Reef Catchment Area, including agriculture, manufacturing and property.

Our activities are focused on projects that adopt clean energy solutions and we encourage projects with the potential to improve water quality outcomes for the Reef. We’ve identified sugar cane, bananas and grazing as being key production areas where clean energy technologies financed by the CEFC can produce positive water quality outcomes.

Our finance for smaller-scale investment projects includes energy and water-efficient irrigation systems, precision guided on-farm machinery, process and manufacturing equipment upgrades and the retrofitting of heating, cooling and lighting in buildings.

Recycling fund

The Australian Recycling Investment Fund can provide up to $100 million in CEFC finance to projects which use clean energy technologies to support waste recycling. The fund has a particular focus on waste plastics, paper, glass and tyres.

CEFC investment commitments through the Australian Recycling Investment Fund align with the principles of the circular economy, which prioritises waste minimisation, as well as the reuse, recycling and reprocessing of waste materials. These measures can reduce landfill volumes and landfill-related emissions.

Waste is responsible for some two per cent of Australia’s emissions, largely from methane gas produced by decaying organic waste in landfills. According to Australia’s National Waste Policy, each year, Australians generate 2.7 tonnes of waste per head, including plastics, paper, glass, metals, textiles, masonry, food and other organic materials.

The CEFC has a strong track record of investing in waste-related projects, as part of its role in accelerating additional investment in Australia’s transition to a low emissions economy.

CEFC Case studie1