13 July 2015
The CEFC was provided with a draft Investment Mandate by its responsible Ministers (the Treasurer the Hon Mr Hockey, and the Finance Minister the Hon Sen Cormann) under correspondence dated 24 June 2015.
Receipt of the draft Investment Mandate does not impact on existing CEFC investments and co-financing programs. These and the CEFC’s investment activities, including development of new investment opportunities continues as previously, in line with the CEFC’s purpose and responsibilities.
The CEFC Board is obliged to, and continues to, govern the Corporation consistent with its legal duties under the Clean Energy Finance Corporation Act 2012 and the Public Governance, Performance and Accountability Act 2013.
This is focused on ensuring the attainment of the CEFC’s purpose as set out in section 3 of the Clean Energy Finance Corporation Act 2012, namely ‘to facilitate increased flows of finance into the clean energy sector’. The CEFC will continue do so by performing its investment function in accordance with Part 6 of the Clean Energy Finance Corporation Act 2012 by investing, directly and indirectly in clean energy technologies.
The Corporation is taking advice in relation to the draft Mandate and will respond to the Ministers in accordance with the procedure set out in section 66 of the Clean Energy Finance Corporation Act 2012 and will be providing any substantive comment on the Mandate in that context.
About the CEFC
The Clean Energy Finance Corporation (CEFC) invests using a commercial approach to overcome market barriers and mobilise investment in renewable energy, energy efficiency and low emissions technologies.
Since its inception, the CEFC has committed over $1.4 billion in finance to investments in clean energy projects valued at over $3.5 billion.
The CEFC invests for a positive financial return, with its more than 55 direct investments and 34 projects co-financed under aggregation programs expected to achieve a positive net benefit for the taxpayer. These projects help to improve energy productivity for businesses across Australia, develop local industries and generate new employment opportunities.
About the Investment Mandate
An Investment Mandate direction is the means by which the Government of the day provides instruction as to how the Corporation can make investments, providing it:
• does not have a purpose of directing the Corporation to require the corporation to make or not make a particular investment and
• is not inconsistent with the Act, (including the object of the Act).
Under the Act, the CEFC Board must be consulted on the draft of a proposed new mandate, and any submission made by the Board must be tabled in the Parliament.
Full details of this are to be found at: https://www.comlaw.gov.au/Details/C2012A00104/Html/Text#_Toc330982504