Powering Australia Technology Fund
Through the $500 million Powering Australia Technology Fund, the CEFC is backing the growth of our climate tech ecosystem.
We will invest in businesses and entities that are developing, commercialising and supporting the deployment of technologies with the potential to accelerate Australia’s transition to net zero emissions by 2050.
The Australian climate solution innovation ecosystem is richly diversified across many technologies, industry sectors and stages of development. Reflecting this diversity, the Powering Australia Technology Fund (PATF) will look to support the growth and expansion of projects and businesses that are driving the development, commercialisation or take up of clean energy technologies. This will include climate tech and other solutions that facilitate the achievement of Australia’s greenhouse gas emissions reduction targets. We expect to make commitments through PATF in the 2023–24 year. These commitments will complement our investments via the CEFC General Portfolio and the Clean Energy Innovation Fund.
About the Powering Australia technology Fund
1Energy generation, distribution, storage and consumption, including solar, wind, battery storage, low- and no-carbon fuels
2The built environment and circular economy, including energy efficient building materials, modular buildings and building management systems
3Transport and mobility systems, including businesses and business models that accelerate the uptake of electric vehicles and other forms of low emissions mobility
4Sustainable land use and land management technologies, methods and practices
The CEFC will develop investment strategies and criteria for the PATF over time, taking into account the varying funding models, pathways and resources available to emerging clean energy technologies and climate tech solutions. We expect to pursue a broad range of investment approaches, ranging from early and late-stage venture capital, development capital, growth equity to asset-based financing via direct and fund-based investments.
Climate tech investments
With no single solution to the complex challenge of economy-wide emissions reduction, industry analysis points to the diversity and scope of climate tech solutions, from directly reducing or removing emissions to improving natural capital and increasing climate adaptation and resilience.
In this context, CEFC capital is backing a diverse portfolio of alternative investment products to extend our reach into areas of the economy with the potential for significant emissions reduction.
The approach reflects the complexity of decarbonisation at the sector-specific level and the need for a variety of investment approaches and climate tech solutions. CEFC investments in the alternatives space include large-scale institutional funds, backing for specialist new emissions-focused funds and expanding our involvement in private equity as a means of addressing the carbon footprint of mid-market companies. These investment commitments drew on the CEFC General Portfolio and were made before the PATF was established.
Pacific Equity Partners targets mid-market infrastructure decarbonisation
Read moreWe see significant opportunities to invest in leading mid-market businesses that need support working through the energy transition and decarbonising their operations. Our investment focus remains on finding good businesses which will also benefit from moving towards a decarbonisation goal.Andrew CharlierManaging Director, PEP
Crescent Capital private equity fund powers emissions reduction
Read moreIt’s a pivotal time for decarbonising mid-market Australian companies, with a relatively short period of time to act for companies that wish to achieve meaningful emissions reductions by 2030. At Crescent we are incorporating emissions reduction activities not just because we believe it is the right thing to do, but also because we believe it will build better and more valuable businesses over the course of our holding period.Lucy CooperDirector of ESG, Crescent Capital
Adamantem drives lower emissions across private equity assets
Read moreWe believe this is the direction needed to accelerate Australia’s transition toward more sustainable economic activity. We look forward to working with the CEFC on further developing and refining our emission reduction strategies that target long-term positive impact.Rob KoczkarCo-founder and Managing Director, Adamantem Capital