Clean Energy Finance Corporation

The Clean Energy Finance Corporation (CEFC) is an Australian government-owned green bank established in 2012, with the core mission of accelerating Australia's transition to a cleaner energy economy. It acts as a specialist financier, investing across the spectrum of clean energy technologies and projects, often co-investing with private capital. The CEFC's mandate is to overcome market barriers by providing finance for projects, technologies, and businesses that might struggle to attract conventional funding due to perceived risk or novelty, thereby demonstrating commercial viability and attracting further private sector investment.

CEFC's investment strategy is broad, encompassing renewable energy sources like solar, wind, and hydro, as well as energy efficiency improvements, battery storage, green hydrogen, and other low-emissions technologies. Its portfolio extends across various sectors, including sustainable infrastructure, agriculture, transport, manufacturing, and property. By strategically deploying capital, the CEFC aims to de-risk emerging technologies and scale up proven solutions, fostering innovation and growth within Australia's clean energy sector.

Since its inception, the CEFC has made a significant impact on the Australian clean energy landscape. As of mid-2024, the CEFC has committed over A$12.5 billion (approximately US$8.25 billion) in finance across more than 200 projects. These commitments have played a crucial role in catalyzing a much larger total investment, exceeding A$43 billion (approximately US$28.38 billion) in clean energy projects nationwide. This demonstrates its pivotal role in mobilizing private capital towards Australia's net-zero emissions goals.

The CEFC's investment cheque sizes vary considerably depending on the nature and stage of the project. Through its Clean Energy Innovation Fund, it provides venture capital for early-stage companies and innovative technologies, with investments starting as low as A$250,000 (approximately US$165,000). For larger infrastructure and project finance, the CEFC can commit substantial amounts, often reaching hundreds of millions of Australian dollars for a single project. Individual commitments can range significantly, with some exceeding A$250 million (approximately US$165 million) and potentially going up to A$500 million (approximately US$330 million) for major initiatives. This flexible approach allows the CEFC to support a diverse range of clean energy initiatives, from nascent startups to large-scale national infrastructure.