Clean Energy Finance Corporation Act 2012

All investments must be:

1. In clean energy technologies (renewables, energy efficiency, or low-emission tech)
2. Primarily Australian-based
3. Not in prohibited technologies (nuclear power or carbon capture and storage)

Who runs it?

• A Board of 5–7 members appointed by two Ministers (the Minister for Energy and the Finance Minister), chosen for expertise in finance, engineering, energy, law, economics, or environmental sectors
• A CEO appointed by the Board, responsible for day-to-day operations
• The Board sets strategy; the government sets the overall direction through an Investment Mandate (a formal direction that the Ministers must issue, setting policy on risk, returns, and investment types)

Key guardrails

• Nuclear and carbon capture are banned — the CEFC cannot invest in these technologies under any circumstances
• Ministers cannot direct specific investments — the government sets overall policy but cannot tell the CEFC to invest in (or avoid) any particular deal
• Transparency is required — quarterly investment reports must be published online, and annual reports must detail investment performance, costs, and concessions given
• Surplus cash goes back — if the CEFC accumulates more than $20 million in surplus funds, Ministers can direct it to return the excess to government

Why does this matter to you?

If you're a business wanting to build a solar farm, retrofit a building for energy efficiency, or develop a new clean technology, the CEFC exists specifically to fund deals that private banks might consider too risky. It aims to "crowd in" private investment — meaning it co-invests alongside private lenders to make clean energy projects bankable.