The Federal Government has passed the Clean Energy Finance Corporation Bill 2012, paving the way for the establishment of the Clean Energy Finance Corporation (CEFC).

 

The CEFC will be run as an independent body that will drive commercial investment in low-carbon technologies as part of the Federal Government’s Clean Energy Future Package.

 

To be chaired by the Reserve Bank Board member Jillian Broadbent, the fund will be responsible for breaking down market barriers faced by clean technologies.

 

The full CEFC Board will be appointed by the Federal Government and will be given an investment mandate that will enable the Board to further develop the corporation’s investment strategy. The CEFC will be legally required to invest responsibly and manage risk to achieve a target rate of return and ultimately be financially self-sufficient.

 

The Clean Energy Finance Corporation will work alongside the carbon price, the Renewable Energy Target and the Australian Renewable Energy Agency to drive significant renewable energy and clean energy investment and innovation. These mutually supporting elements of the Government's Clean Energy Future Plan are fundamental to the transformation of our energy sector.

 

The CEFC will commence investment operations from1 July 2013.