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Investing with commercial rigour in our clean energy transition - CEFC Annual Report

24 October 2019

The Clean Energy Finance Corporation Annual Report for 2018-19 has been tabled in the Australian Senate, fulfilling an important part of the CEFC’s transparency, information sharing and regulatory obligations. View the report

CEFC CEO Ian Learmonth said the Annual Report demonstrated that the CEFC was investing with commercial rigour and increasingly well equipped to address the challenges of Australia’s transition to lower emissions.

“The CEFC has a unique role as a catalyst for change. We invest to lead the market, putting our capital to work in new areas, building investor confidence and accelerating solutions to difficult problems. Our record of achievement gives the market confidence to follow our lead,” Mr Learmonth said.

“In 2018-19, we further strengthened our position as Australia’s leading specialist clean energy investor. CEFC finance is playing an increasingly important role in efforts to drive down emissions right across the economy, including in agriculture, energy, infrastructure, property, transport and waste.

“We recognise these achievements benefit from the continued positive collaboration of entrepreneurs, developers, businesses, investors, industry bodies and government and thank them for their shared commitment to lower emissions.”

CEFC performance highlights

  • The CEFC has deployed more than $5 billion to investments and projects around Australia since it began investing, including $1.3 billion in 2018-19.
  • $718 million in CEFC capital has been repaid or returned since inception, including a record $321 million in 2018-19, underscoring the CEFC’s ability to earn a positive return on our investments and reinvest on behalf of taxpayers.
  • Since inception, CEFC investments have helped drive more than $24 billion in additional private sector investment commitments Australia-wide, including $6.3 billion in 2018-19.
  • Lifetime CEFC commitments at 30 June 2019 stood at $6.2 billion[1], including almost $1.5 billion in the 12 months to 30 June 2019.
  • The CEFC has delivered nearly $1.1 billion in finance for more than 11,300 smaller-scale projects since inception, including $400 million in 2018-19, with an average investment of $95,000.
  • Each dollar of CEFC finance committed in 2018-19 was matched by more than $3 from the private sector; since we began investing CEFC private sector leverage has exceeded $2:$1.
  • The work of our $200 million Clean Energy Innovation Fund continued to provide leadership in the exciting cleantech sector, with its lifetime investment commitments reaching $69 million in 2018-19.
  • CEFC investments are aiming to reduce Australia’s greenhouse gas emissions by an estimated 260 million tonnes of CO2-e over their lifetime, making a considerable contribution to the national emissions reduction effort.

In his report, Chair Steven Skala AO said that after another strong year of investment, the CEFC had consolidated its position as a reliable financial institution and prudent steward of Australian taxpayers’ money.

“A condition of all CEFC investments is that they advance the Australian Government’s goals, over time, to decarbonise the economy and meet Australia’s international commitments, including the Paris Agreement targets by 2030 to reduce emissions on 2005 levels by 26–28 per cent,” Mr Skala said.

“In an area where prediction is both difficult and often unreliable, one thing is clear: Australia is on the path to decarbonisation. The question is not whether as a nation we continue in that direction but rather, how quickly and effectively we do so, and how well we adapt to new energy mixes as part of that journey.”

Mr Learmonth said the CEFC was increasingly targeting complementary projects and technologies to improve the security and reliability of our electricity system.

“This work will support the transition to a low emissions economy, powered by a higher share of Australia’s abundant renewable energy resources,” Mr Learmonth said. “As we extend our scope into new territories and new technologies, we are fortified by a strong market presence, a robust investment pipeline and an enduring commitment to invest with commercial rigour on behalf of Australian taxpayers.”

Key numbers at 30 June 2019

CEFC commitments

2018–19

Lifetime

CEFC commitments

$1.46b

$7.2b

Transactions financed

30

~140

Transaction value

$6.3b

$24.0b

Leverage

>$3:$1

>$2:$1

Est lifetime emissions (tCO2-e)

64m

260m

Finance deployed

$1.3b

~$5.0b

Finance repaid/returned

~$321m

~$718m

 

 

[1] Excluding revocable commitments, repayments and cancellations on total commitments of almost $7.2 billion since inception