Reef Funding Program
The Reef Funding Program invests in clean energy investments and businesses that
support delivery of the Australian Government Reef 2050 Plan and the long term health of the Great Barrier Reef.
The CEFC finances projects in the Great Barrier Reef Catchment Area across renewable energy, energy efficiency and low emissions technologies and is focused on all areas of economic activity in the Reef Catchment Area, reflecting our broad and ongoing consultation with businesses, government agencies and financiers.
To 30 June 2020, total CEFC commitments through the Reef Funding Program reached an estimated $390 million, across some 420 transactions. These investment commitments were in projects with a total value of $1.2 billion. Market conditions in the large scale renewables sector and general economic conditions in the Reef Catchment Area meant that no large scale direct financing commitments were made under the Reef Funding Program in 2019–20. Delivery of new commitments over the reporting period was therefore slower than the previous year, with approximately $25 million committed to the Reef Catchment area across 22 smaller scale asset finance projects in 2019–20, including in energy and water efficient irrigation systems, solar installations, farm and manufacturing machinery.
The absence of large scale direct financing commitments during the reporting period impacts the degree of financial leverage and emissions abatement that can be directly attributed to the Reef Funding Program.
During the year we were pleased to work with the Australian Banana Growers’ Council (ABGC) to promote the Reef Funding Program and the CEFC asset financing programs to commercial banana growers in the wet tropics region. Information on CEFC finance programs is being offered as an option to banana growers who apply for funding through the $1 million banana incentives grant program, being administered by the ABGC on behalf of the Queensland Office of the Great Barrier Reef.
Abatement for Cities and Reef programs
Emissions abatement for the small scale asset finance programs is estimated based on the mix of portfolio assets rather than per each individual asset, which would prove impractical at such volume. Therefore, abatement is estimated and reported at the national level rather than allocated by state. In addition, financial leverage amounts for the individual asset level investments are reported as zero. This is a conservative approach, reflecting the fact that this CEFC finance is delivered via our co-financiers, with the CEFC having no visibility of cash or other credit contributions that may have been made by the individual borrower.