The CEFC was established under the Clean Energy Finance Corporation Act 2012 (CEFC Act). It is an independent statutory authority, defined as a corporate Commonwealth entity under the Public Governance, Performance and Accountability Act 2013 (PGPA Act).
The CEFC has access to $10 billion in capital, by way of special appropriations under the CEFC Act, to invest in clean energy technologies, projects and businesses. It is governed by an independent Board that reports to the Australian Parliament through its responsible Ministers.
The purpose of the CEFC is to facilitate increased flows of finance into the clean energy sector. Consistent with this statutory objective, the Board has established the CEFC mission:
To accelerate Australia’s transformation towards a more competitive economy in a carbon constrained world, by acting as a catalyst to increase investment in emissions reduction.
The CEFC’s purpose and mission is achieved through:
- Investing in clean energy technologies, projects and businesses
- Leveraging CEFC investment to attract additional investment from the private sector
- Sharing experiences, insights and expertise with project sponsors, co–investors, public sector agencies, the energy sector and other industry bodies.
Our investment approach has a clear focus on the areas of the economy where CEFC finance can have a high impact in accelerating emissions reduction to contribute to Australia’s decarbonisation challenge.
We invest, directly or indirectly, in businesses and projects that are solely or mainly Australian–based and that develop, commercialise or are used in clean energy technologies, including the related supply of goods and services. Investments in renewable energy technologies are required to make up at least half of our investments from 1 July 2018. We invest responsibly and manage risk prudently, adopting a commercially rigorous approach to our investment activities.
The CEFC operates under the CEFC Act, as well as other governing legislation, including the PGPA Act. Under the CEFC Act, the CEFC has two responsible Ministers. The responsible Ministers jointly appoint the CEFC Board, which appoints the Chief Executive Officer, a statutory officer. The CEFC Executive and staff are employed under terms and conditions determined by the Board.
The Board adopts private sector principles of good corporate governance in providing oversight and direction to the Executive. Two Board committees contribute to effective governance:
- Audit and Risk Committee: advises and assists the Board in financial governance, financial performance, audit, annual reporting, compliance and all aspects of risk management
- People and Culture Committee: advises and assists the Board in workforce planning, performance evaluation and monitoring, as well as remuneration and succession planning for the Executive.
The Board has further adopted a code of conduct and ethics and corporate policies and procedures to establish appropriate controls and to provide a sound decision–making framework for the CEFC. This framework includes a robust set of Investment Policies, a Risk Management Framework and underlying guidelines.
The CEO has responsibility for the day–to–day management of the CEFC, assisted by the Executive and four Executive committees:
- Executive Investment Committee: reviews all investment proposals (with the exception of those of the Clean Energy Innovation Fund)
- Joint Investment Committee: operated in conjunction with the Australian Renewable Energy Agency (ARENA), reviews all investment proposals relating to, and the performance of, the Clean Energy Innovation Fund
- Asset Management Committee: oversees the management and performance of the investment portfolio
- Executive Risk Committee: oversees performance and risk management for the Corporation’s investments and for the Corporation itself.