The Australian Government announced the establishment of a $10 billion commercially oriented Clean Energy Finance Corporation (CEFC) as part of its Clean Energy Future Package.
An expert review panel was established to consult with key stakeholders and report to the Government (in March 2012) with recommendations on the implementation and governance arrangements for the CEFC. The members of the review panel were: Jillian Broadbent AO, David Paradice and Ian Moore.
The objective of the CEFC is to overcome capital market barriers that hinder the financing, commercialisation and deployment of renewable energy, energy efficiency and low emissions technologies.
The CEFC will invest in firms and projects utilising these technologies as well as manufacturing businesses that focus on producing the inputs required. It will not invest in carbon capture and storage technologies.
The CEFC will not provide grants. It is intended to be commercially oriented and to make a positive return on its investments.
The CEFC is not intended to compete directly with the private sector in the provision of financing to the clean energy sector; instead, it is intended that the CEFC will act as a catalyst to private investment that is currently not available for clean energy technologies and thereby contribute to reducing carbon emissions and cleaner energy.
Capital that is returned from investments will be retained for reinvestment by the CEFC, with the Board to determine the quantum of any dividends payable to the Australian Renewable Energy Agency.