The CEFC Act
The CEFC is a statutory authority established by the Australian Government under the Clean Energy Finance Corporation Act 2012. Under the Public Governance, Performance and Accountability Act (PGPA Act), the CEFC is known as a corporate Commonwealth entity. The CEFC Act:
- Creates the CEFC Special Account, a Special Account under the PGPA Act which is credited with $2 billion each 1 July, for five years from 1 July 2013, to enable the CEFC to invest in the clean energy sector
- Provides the CEFC Board with statutory responsibility for decision-making and managing the CEFC's investments. The Board operates and makes its investment decisions independently of government, based on rigorous commercial assessments
- Provides for the appointment of the CEFC Chief Executive Officer, who is responsible for the day-to-day administration of the CEFC, subject to (and in accordance with the policies determined by) the Board
- Requires investments by the CEFC to be "complying investments" as defined in Section 59 (2).
The Australian Government's current CEFC Investment Mandate Direction ("Government Mandate") came into effect in May 2020. The Government Mandate gives guidance to the Board about how the CEFC's investment function should perform.