Release of CEFC Expert Review
The Australian Government has released a report by the independent Clean Energy Finance Corporation – CEFC Expert Review – and has fully supported all of its recommendations.
The review was conducted to advise on the design of the $10 billion CEFC, which will provide a new source of finance to renewable energy, low-emissions and energy efficiency technology.
The CEFC was announced as part of the Clean Energy Future package to encourage private investment and help overcome capital market barriers to commercialising and deploying cleaner energy technologies. It will play a crucial role in driving the investment needed to develop and deploy new technologies and is vital in building a clean energy future which will strengthen our economy and protect our environment.
The CEFC’s operating framework will be based on three principles which will direct where and how the CEFC will invest.
Firstly the focus will be on its investments on Australia’s clean energy sector namely renewable energy, low-emissions and energy efficiency technology, as well as manufacturing companies that produce the required inputs.
The CEFC will also apply commercial rigor to its investment decisions. This means that investments will be developed beyond the research and development stage, have a positive rate of return and have the capacity to repay capital.
Finally, the CEFC will examine financial barriers and determine whether an investment can be structured to overcome those barriers. Investment proposals will be assessed on a case-by-case basis.
The report is an important step towards establishing a robust and rigorous organisation that will help Australia achieve a clean energy future.