CEFC welcomes creation of Clean Energy Innovation Fund

23 March 2016

The Clean Energy Finance Corporation (CEFC) welcomes the Australian Government's announcement on Thursday 23 March 2016 that the organisation will have a greater focus around innovation, through the new $1 billion Clean Energy Innovation Fund (CEIF).

The CEFC also welcomes the Government's confirmation that it will retain the CEFC and the Australian Renewable Energy Agency (ARENA). The CEIF will be jointly managed by the CEFC and ARENA, drawing on their complementary experience and expertise. It will provide both debt and equity for clean energy projects.

CEFC CEO Oliver Yates said: "The creation of the CEIF will help innovative entrepreneurial companies build their commercial strength, so they can make a positive contribution to the Australian economy and our national emissions challenge.

"The CEFC is a flexible policy tool. The CEFC is pleased to be able to assist Government in supporting complementary initiatives and policies through Investment Mandates that are consistent with the CEFC Act.

"Innovation and entrepreneurial business activity is vital across all sectors of the Australian economy, especially in growth sectors such as clean energy, energy efficiency and low emissions solutions.

"Since we were created, the CEFC has supported businesses working with innovative technologies across many areas. This includes our support for Western Australia's Carnegie Wave Energy, South Australia's Sundrop Farms, the Northern Territory's Epuron and Queensland's Landfill Gas Industries, to name a few.

"We look forward to working even more closely with entrepreneurial businesses that are striving to bring innovative low emissions, energy efficiency and clean energy solutions to market through the support of the new Clean Energy Innovation Fund."

Mr Yates said the CEFC also welcomed the continued relationship with ARENA.

"The CEFC and ARENA have worked closely together since our organisations were created, and many projects have benefited from our respective skills and experience," Mr Yates said.

"This includes our continued work in the area of large-scale solar, where we are looking to significantly increase the availability and affordability of this renewable energy resource in rural and regional Australia." 

Under the CEFC Act, the Australian Government can provide direction to the CEFC through an Investment Mandate regarding the type, rate and risk of investments the CEFC should undertake.

"We understand the Government intends to provide a new Mandate addressing the creation of the CEIF and that this direction will enable the CEFC to target higher-risk, more innovative investments," Mr Yates added. 

"The CEIF will focus on companies, businesses and projects at early stages of development that are now seeking growth capital or early stage capital to assist their businesses get to the next stage of their development."

There is additional information in this joint media release from the Prime Minister, the Hon. Malcolm Turnbull MP, and the Minister for the Environment, the Hon. Greg Hunt MP.