Clean Energy Finance Corporation

Clean Energy Finance Corporation
IndustryClean energy investment
FoundedAugust 3, 2012 (2012-08-03)
Headquarters
Sydney
,
Australia
Number of locations
4
Key people
Ian Learmonth (CEO)
Steven Skala (chair)
OwnerAustralian Government
Websitewww.cefc.com.au

The Clean Energy Finance Corporation (CEFC) is an Australian Government-owned green bank that invests in clean energy and economy-wide decarbonisation to help achieve Australia's national goal of net zero emissions by 2050. As of 2025, the CEFC is responsible for investing more than $32 billion on behalf of the Australian Government.[1] Key focus areas include the energy grid, renewable energy, natural capital and sustainable housing. The CEFC committed a record $4.7 billion in new investments in its most recent financial year, (to 30 June 2025). Additional private sector and third-party capital took the total value of these investments to $25.7 billion in the 12-month period. Lifetime CEFC commitments reached $18.3 billion, for a total transaction value of $85.3 billion.[2]

Governance and legislative requirements

The CEFC is responsible for investing more than $32 billion on behalf of the Australian Government.[3] It is mandated by law to anticipate and respond to the environment and market conditions in which it operates, which may include increasing its investment activities to fill market gaps where the private sector is absent.[4] It is obliged to operate in a way that delivers a positive return for taxpayers across its portfolio, and publishes quarterly reports on its website about its investment commitments.[5] The Clean Energy Finance Corporation Act 2012[6] established the CEFC, set out its purpose and functions, and established arrangements for the Board, CEO and staff. The functions of the Board, as prescribed under s14 of the CEFC Act, are to decide strategies and policies to be followed by the CEFC; ensure the proper, efficient and effective performance of the CEFC’s functions; and perform any other functions conferred on the Board by the CEFC Act.[7] The CEFC is a corporate Commonwealth entity under the Public Governance, Performance and Accountability Act 2013 (PGPA Act).[8] As of 2025 the CEFC is responsible for investing more than $32 billion on behalf of the [Government].

Investment Mandate

The Australian Government is required to issue the CEFC Board with a Clean Energy Finance Corporation Investment Mandate Direction from time to time.[9] The 2023 Investment Mandate prioritised:

  • The $19 billion Rewiring the Nation Fund that invests in projects that rebuild, modernise and strengthen Australia’s electricity grids and energy systems.[10]
  • The $11.5 billion General Portfolio that targets economy-wide investments including renewable energy generation and storage, property, infrastructure, natural capital, electric vehicles, small-scale asset finance and green and sustainability-linked loans.
  • The $1 billion Household Energy Upgrades Fund that works with co-financiers to support energy upgrades in residential buildings.[11]
  • The $500 million Powering Australia Technology Fund that supports Australian climate tech businesses through direct investment and investment in specialised funds.[12]
  • The $300 million Advancing Hydrogen Fund that supports the growth of a clean, innovative safe and competitive Australian hydrogen industry.[13]
  • The $200 million Clean Energy Innovation Fund that supports emerging climate technology and is managed on behalf of the CEFC by Virescent Ventures.[14]

The CEFC publishes quarterly reports on its website regarding investment commitments.[15]

History

The CEFC Act was amended in mid-2022 to extend the purpose of the CEFC to the achievement of Australia’s net zero ambitions. Since then, the Australian Government has increased the total capital allocation to the CEFC to more than $32 billion.[16][17][18] An independent statutory review of the CEFC Act, tabled in Parliament on 14 December 2018,[19] found the CEFC had facilitated projects that would not have otherwise proceeded, and had attracted substantial private co-investment to projects. The CEFC submission to the Statutory Review is also publicly available.[20] During the organisation’s early years the Coalition-led Government attempted and failed to abolish the CEFC.[21] Prime Minister Tony Abbott sought to ban the CEFC from investing in wind power[22] and rooftop solar.[23] Under Prime Minister Malcolm Turnbull that action was overturned.[24]


See also

References

  1. ^ "Mission and values –". CEFC. Retrieved 29 September 2023.
  2. ^ CEFC reports record-breaking year of scale, impact and leverage in the push to net zero. CEFC. Retrieved 30 July 2025
  3. ^ "Mission and values –". CEFC. Retrieved 29 September 2023.
  4. ^ "How we operate - CEFC". CEFC. Retrieved 29 September 2023.
  5. ^ "Compliance - CEFC". CEFC. Retrieved 29 September 2023.
  6. ^ "Clean Energy Finance Corporation Bill 2012". Parliament of Australia. [of Australia.] 16 August 2012. Retrieved 19 May 2013.
  7. ^ https://www.transparency.gov.au/publications/climate-change-energy-the-environment-and-water/clean-energy-finance-corporation/clean-energy-finance-corporation-annual-report-2023-24/governance/board
  8. ^ "Public Governance, Performance and Accountability Act 2013". www.legislation.gov.au.
  9. ^ 9. "Search results". Federal Register of Legislation. 1 January 2024. Retrieved 25 March 2024.
  10. ^ “Where we invest RTN Fund – CEFC”. CEFC, Retrieved 31 July 2025.
  11. ^ “Household Energy Upgrades Fund.” Australian Government Transparency Portal, CEFC 2023-24 Annual Report, Retrieved 31 July 2025.
  12. ^ “Powering Australia Technology Fund”. Australian Government Transparency Portal, CEFC 2023-24 Annual Report, Retrieved 31 July 2025.
  13. ^ “Advancing Hydrogen Fund” Australian Government Transparency Portal, CEFC 2023-24 Annual Report, Retrieved 31 July 2025.
  14. ^ “Where we invest Clean Energy Innovation Fund.” CEFC, Retrieved 30 July 2025.
  15. ^ "Statutory reports - Clean Energy Finance Corporation". CEFC.
  16. ^ Bowen, Chris (26 July 2022)."Legislating to end climate and energy chaos, Media release". The Hon Chris Bowen MP. Australian Government. Retrieved 29 September 2023.
  17. ^ CEFC welcomes additional $2 billion capital allocation from Australian Government. CEFC. Retrieved 31July 2025.
  18. ^ "Mission and values –". CEFC. Retrieved 29 September 2023.
  19. ^ "Statutory Review of the Clean Energy Finance Corporation" (PDF). CEFC. 10 October 2018. Retrieved 24 March 2023.
  20. ^ "CEFC welcomes publication of the independent statutory review of its operations - Clean Energy Finance Corporation". www.cefc.com.au.
  21. ^ Abbott, Tony."Coalition Leader's Letter to CEFC August 2013" (PDF).
  22. ^ Adam Gartrell (11 July 2015). "Tony Abbott has escalated his war on wind power". Sydney Morning Herald.
  23. ^ "Government pulls the plug on household solar". Sydney Morning Herald. 13 July 2015
  24. ^ "New clean energy investment mandate a shift from policy proposal by Abbott". The Guardian. 24 December 2015.
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