Building market capacity
As market participants increase their focus on net zero emissions, there is growing awareness of the complexity of the challenge – and the diversity of the solutions. Technology is rapidly evolving, as innovation drives production down the cost curve. Investment options are growing at scale, and becoming more diverse. Regulators, investors and consumers are demanding transparency and consistent emissions reporting. Drawing on our investment scope and experience, the CEFC seeks to play a leading role in these considerations.
First Nations investment screening
The CEFC First Nations investment screening approach was developed to better inform the CEFC investment decision-making framework with respect to First Nations considerations. The approach is structured around three critical areas: (1) identify First Nations considerations, (2) assess the likely impact of identified issues and (3) engage with relevant First Nations people to secure positive outcomes. In developing the approach, the CEFC benefited from the advice of First Nations representatives, government agencies, investors and industry participants. We were pleased to share our approach with other investors.
Industrial emissions
Setting up industrial regions for net zero: a guide to decarbonisation opportunities in regional Australia was released by the Australian Industry Energy Transition Initiative (ETI) in the reporting year. The ETI represents industry and finance participants, including the CEFC, and is committed to accelerating action towards net zero emissions. It examined emissions abatement opportunities in five industrial regions: Pilbara and Kwinana in WA, the Hunter and Illawarra in NSW, and Gladstone in Queensland. The comprehensive analysis identified 70 Mt CO2-e of potential emissions abatement opportunities, representing an 88 per cent reduction in current emissions, equivalent to removing all cars and light commercial vehicles from Australian roads.
Resources and the low emissions economy
A landmark report, The compelling case for decarbonisation – Mining in a low-emissions economy, is a joint effort of the CEFC and the Minerals Research Institute of Western Australia. The extensive report discusses the role of the mining sector in the low emissions economy of the future, not least because of Australia’s abundance of critical minerals. It also provides guidance on how mining can benefit from the operational efficiencies and low-cost energy solutions underpinning the transition to net zero emissions.
Securitisation and ESG
The ASF Market Guideline on ESG Disclosure provides a reference point for developing ESG practice in securitisation, supporting enhanced transparency and comparability in Australia. The CEFC led the Australian Securitisation Forum working group in developing the guidelines, together with issuers, investors and other market participants.
Large-scale solar development
The Generator Operations Series provides insights into the real-world experience of large-scale solar development in Australia. As a contributor to the ARENA-led analysis, we aim to support developers, investors and grid authorities to better understand the Australian large-scale solar market and the potential investment risks and mitigants. Reports published in the 2021–22 year examined ramp rates, negative pricing and bidding behaviour, and assessed forecasts against actual performance.