02 Governance, Structure & People CEFC BUSINESS MODEL AND APPROACH TO BUSINESS

CEFC ANNUAL REPORT / 2014–15

CEFC BUSINESS MODEL AND APPROACH TO BUSINESS

PUBLIC PURPOSE WITH A PRIVATE SECTOR APPROACH

The CEFC is an investment institution and operates commercially. However the CEFC differs from commercial financial institutions in that it also has a public policy purpose.

The CEFC was formed with a statutory object to ‘facilitate increased flows of finance into the clean energy sector’ and it does this by performing the investment function in the renewable, energy efficiency and low emissions technology sectors.

Its Investment Mandate direction specifies that the CEFC applies commercial rigour when making its investment decisions, using financial products and structures to address the barriers inhibiting investment in the sector.

In establishing the Corporation, the then Government confirmed its expectation that, in line with its public policy intent, the Corporation should also consider positive externalities when making investment decisions. Put simply this means that the Corporation can give weight to non-financial aspects to the transaction that are of economic or public benefit.