Scope of the Review
Reporting to the Deputy Prime Minister and Treasurer, the Hon Wayne Swan MP and the Minister for Finance and Deregulation, Senator the Hon Penny Wong, by mid-March 2012, the Chair and Review members are requested to:
1. Develop an implementation plan for the establishment of the CEFC.
2. Develop and recommend a proposed investment and operating mandate for the CEFC, with the mandate reflecting:
2.1 the market area in which the CEFC will operate, including broad guidelines for how the corporation would invest and manage risk;
2.2 how it will approach the intention that funding be divided into two streams:
2.2.1 a renewable energy and enabling technology stream which will have one half of the funding allocated; and
2.2.2 an energy efficiency and low emissions technologies stream which will have half of the funding allocated and will be able to fund renewable energy projects in addition to the dedicated stream.
2.3 how the CEFC is positioned within the broader objectives of the Government's Clean Energy Future Package.
3. Consistent with statutory requirements and the guidance set out in Governance Arrangements for Australian Government Bodies, suggest appropriate governance principles and mechanisms, including:
3.1 responsibilities, powers and statutory duties of office holders including the Board, Chair and Chief Executive Officer;
3.2 appropriate Board structure, representation and skills;
3.3 reporting obligations of the Board;
3.4 relationship between the Board and responsible Ministers; and
3.5 duties and functions of the CEFC employees.
4. In the context of the proposed operating mandate, assess how the CEFC will interact with other Australian Government bodies and initiatives, including the Australian Renewable Energy Agency and Low Carbon Australia. Where appropriate, recommend a path for transitioning from the current arrangements to arrangements which streamline support for cost-effective carbon reduction.
5. In conducting the Review, the Chair is to put in place a process for consulting key stakeholders, including wind producers, about the role of the CEFC and its relationship with the Renewable Energy Target.