01 Performance ABOUT THE CEFC

CEFC ANNUAL REPORT / 2014–15

About the CEFC

The CEFC is an Australian Government statutory authority formed in August 2012 to ‘facilitate increased flows of finance into the clean energy sector’, through investment activities focused on investment in the renewable, energy efficiency and low emissions technology sectors.

The CEFC commenced investing in 2013. In addition to providing a financial return, the CEFC’s investments generate positive impacts, particularly in improvements to energy productivity and reductions in Australia’s carbon emissions. As the CEFC’s investment portfolio builds over time, it is assisting in reducing carbon emissions and in accelerating Australia’s transformation towards a more competitive economy in a carbon constrained world.

CEFC positive impacts

Apart from emissions reduction, positive impacts of CEFC investments also result from technologies moving faster along the innovation chain, lowering their costs, and through greater acceptance in financing markets of such new technologies. Positive impacts can also flow from improvements in technology design, supply chain depth, construction practices, operating skills, financing structures and market risk appetite.

Expanding the number of renewable and low carbon technologies deployed in Australia and developing additional new technologies also helps increase future energy optionality.

The CEFC’s investments are demonstrating that they contribute to ‘proving‑up’ new technologies in an Australian context, increasing the financial sector’s knowledge base about them. In turn, this helps lower the deployment cost for subsequent projects, creating pathways for similar transactions.

The CEFC investment activity is also contributing to creating a wider and deeper knowledge base across investor classes including retail investors and superannuation funds. This base will increase as investment in the clean energy sector grows and diversifies.

The investment activity by the CEFC is contributing to building and maintaining local market capacity and technological know‑how, engineering, manufacturing capability and helping strengthen localised supply chains, which in turn creates jobs for Australians, helping positively impact economic growth.