The Federal Government has provided an additional $2 billion to the Clean Energy Finance Corporation (CEFC), aimed at supporting Australian households, workers and businesses make the shift to renewable energy.
The capital allocation, still subject to parliamentary approval, will take the CEFC’s total investment capacity to $32.5 billion, marking the first time the CEFC has been recapitalised since it was established in 2012.
The Federal Government said the new investment – provisioned for in the Mid-Year Economic and Fiscal Outlook 2024–25 – means the CEFC can also offer significant savings for households and small businesses making the switch to renewable energy.
It also said the innovation and investment supported by the CEFC helps deliver reliable, renewable, cost-saving technologies to Australian households and businesses.
In 2024, the CEFC invested in more than $4 billion in local projects, unlocking around $12 billion in private investment.
The Federal Government said the CEFC has a major role in helping meet Australia’s emissions reduction targets with its finance helping deliver projects that ensure Australia’s overall emissions continue to decrease.
For example, the Federal Government said the CEFC-backed Neoen Culcairn Solar Farm in New South Wales is expected to create more than 400 construction jobs, generate enough clean energy to power 160,000 homes and deliver local benefits to the region worth some $10 million over its lifetime.
CEFC finance is also helping deliver Collie Battery Stage 2 in Western Australia, which is expected to deliver some 150 construction jobs to the region.
The CEFC also works in partnership with retail banks and consumer bodies to help households and businesses to reduce emissions and lower power bills through delivering low-cost loans.
The CEFC’s investments are designed to deliver positive returns, as well as delivering energy savings and emissions reduction.
Prime Minister, Anthony Albanese, said the boost to the CEFC is expected to unlock around $6 billion worth of private sector investment, supporting local good well-paid jobs, energy security and economic growth.
Federal Minister for Climate Change and Energy, Chris Bowen, said as the world shifts to net zero, there are big opportunities and benefits for Australia, so long as it acts now to make the most of demand for clean energy and inputs globally.
“We’re getting on with the changes needed to make the most of Australia’s natural comparative advantage, having some of the best sun, wind, and critical mineral resources in the world.”
CEFC CEO, Ian Learmonth, said the additional capital allocation is an important demonstration of Federal Government’s support for the work of the CEFC as Australia’s specialist ‘green bank’.
“This represents the first increase in the investment capacity of the CEFC General Portfolio since we were established in 2012, with access to $10 billion in capital.
“CEFC investment commitments through the General Portfolio include renewable energy generation and storage, property, electric vehicles, infrastructure and natural capital. They also include capital for our asset finance programs, which have already provided discounted finance to households, business and farmers across close to 80,000 smaller-scale clean energy investments.”
Mr Learmonth said in the six months to December 2024, the CEFC made investment commitments of $1.1 billion through the General Portfolio, with a total transaction value of $6.3 billion, representing an additional $4.85 for each dollar of CEFC capital committed.
“This is a strong indication of the level of market interest in a diverse range of clean energy investment opportunities,” he said.
“The CEFC works to achieve a positive return across our portfolio, with capital repayments and returns to the CEFC available for reinvestment. This recycling of capital has contributed to the ability of the CEFC to make lifetime commitments through the General Portfolio in excess of $14.2 billion to the end of 2024, across some 300 transactions with a total transaction value of more than $62 billion.”
Mr Learmonth said the CEFC expects this additional capital to be particularly important in increasing investment in much-needed renewable energy generation and energy storage projects, which are central to delivering national emissions ambitions.
“AEMO expects investment in new energy infrastructure to support more than 60,000 energy jobs over the next 20 years, with the retirement of coal from our system prior to 2040.
“CEFC investment commitments will continue to play a critical role in this clean energy transition.”
