CEFC

The Clean Energy Finance Corporation (CEFC) is an Australian Government-owned specialist climate investor established by the Clean Energy Finance Corporation Act 2012 to facilitate increased flows of finance into the clean energy sector and support Australia's greenhouse gas emissions reduction targets, including net zero by 2050. It invests across renewable energy generation, energy storage, grid and transmission infrastructure, natural capital, property, infrastructure, transport, industry and resources, alternative fuels, and small-scale asset finance, and it provides capital to emerging climate technology businesses.

The CEFC operates as a corporate Commonwealth entity under the Public Governance, Performance and Accountability Act 2013, governed by an independent board whose functions are set out in s14 of the CEFC Act. It has access to more than $33 billion from the Australian Government and is required to invest with commercial rigour and deliver a positive return for taxpayers across its portfolio, while responding to market gaps where private capital is absent. It publishes quarterly reports on investment commitments. Capital is allocated through the Investment Mandate issued by the Australian Government; the 2023 Investment Mandate set out the $19.65 billion Rewiring the Nation Fund, an $11.5 billion General Portfolio, the $1 billion Household Energy Upgrades Fund, the $500 million Powering Australia Technology Fund, the $300 million Advancing Hydrogen Fund and the $200 million Clean Energy Innovation Fund.

The CEFC does not make grants and does not invest in carbon capture and storage or nuclear technology or nuclear power. Large-scale investments in projects and funds are generally from $20 million upwards and usually include co-investor capital, while discounted small-scale asset finance is delivered through co-financing banks and lenders for projects typically valued between $10,000 and $5 million.

Founding story

The CEFC was created by Australian legislation — the Clean Energy Finance Corporation Act 2012, passed by the Parliament of Australia — which set out its purpose and functions and established arrangements for its Board, CEO and staff. It was founded on 3 August 2012 with the object of facilitating increased flows of finance into the clean energy sector.

Business model

The CEFC deploys Australian Government capital as debt, equity and fund commitments into Australian clean energy, energy efficiency and low emissions projects, aiming for a positive portfolio return for taxpayers rather than grant-making. It co-invests alongside private investors and channels smaller-scale finance through partner financial institutions that originate and assess individual loans.

Returns are generated from investment activity — interest and returns on loans, funds and equity commitments — with a legislated obligation to deliver a positive return across the portfolio; the CEFC does not provide grants.

Traction

Lifetime to 30 June 2026, the CEFC reported $27.1 billion in commitments across more than 440 transactions, $16.6 billion of capital deployment and $104.7 billion in total transaction value, with capital leverage of $3.54 to every $1 (excluding the Rewiring the Nation Fund). In the six months to 31 December 2025 it committed a record $6.1 billion in new investments, taking total investment value with private and third-party capital to $12 billion, with lifetime commitments then at $24.2 billion and total transaction value of $97 billion. The Household Energy Upgrades Fund has backed $1 billion in low-interest loans in its first two years, with participating households reported to have cut energy bills by up to 80 per cent. The predecessor climate tech portfolio managed by Virescent Ventures deployed $270 million across 34 Australian climate tech investments.

Latest developments

In 2026 the CEFC announced it had helped unlock $105 billion of clean energy project value since inception; committed $100 million with Infradebt for up to 16 mid-scale hybrid solar, battery and battery-retrofit projects; committed $150 million to expand discounted finance for ANZ's SME customers; helped establish a $142 million Tasmanian sustainable forestry platform; invested $22 million to finance 148 battery electric trucks; and committed $15 million via Bank Australia to Indigenous-led wetland restoration by the Nari Nari Tribal Council. It also announced a leadership transition and appointed Heechung Sung to a new strategy and capital leadership role.