Glossary of terms
| Term | Description |
| Abatement | Refers to reductions in CO2-e emissions. |
| Advancing Hydrogen Fund | Through the $300 million Advancing Hydrogen Fund the CEFC is working to support the growth of a clean, innovative, safe and competitive Australian hydrogen industry. Eligible projects can include advancing hydrogen production, developing export and domestic hydrogen supply chains and establishing hydrogen hubs. The fund can also consider investing in infrastructure for a hydrogen export industry as well as projects that assist in building domestic demand for hydrogen. The Advancing Hydrogen Fund draws on existing CEFC finance. |
| Aggregation programs | Through aggregation programs with banks, specialised lenders and funds, CEFC finance incentivises borrowers to preference best in class clean energy assets when considering new equipment purchases, property fit-outs and vehicles. The finance can cover up to 100 per cent of the cost of equipment, with projects typically valued at up to $5 million. |
| Australian Recycling Investment Fund | Through the $100 million Australian Recycling Investment Fund, the CEFC has a particular focus on large-scale projects which use clean energy technologies to support the recycling of waste plastics, paper, glass and tyres. The Australian Recycling Investment Fund draws on existing CEFC finance. |
| Clean Energy Finance Corporation Act 2012 | The CEFC Act establishes the CEFC, sets out the organisation’s purpose and functions and establishes arrangements for the Board, CEO and staff. |
| Clean Energy Innovation Fund | The Clean Energy Innovation Fund is the largest dedicated cleantech investor in Australia, created to invest $200 million in early-stage clean technology companies. The Innovation Fund portfolio companies are pursuing diverse opportunities ranging from mobility and smart cities to agriculture, the circular economy and innovative energy demand management solutions. The Clean Energy Innovation Fund draws on existing CEFC finance. |
| CO2-e | Carbon dioxide equivalent is a standard measure that takes account of the different global warming potential of greenhouse gases and expresses the cumulative effect in a common unit, as defined in the Australian National Carbon Offset Standard. |
| Concessionality | Concessionality reflects the mark-to-market valuation of loans committed that financial year. It is measured as the difference between the net present value of each loan’s future cash flows, discounted at market rates, and the net present value of each loan’s future cash flows, discounted at the given concessional rate. |
| Cornerstone investor | A cornerstone investor is the principal investor in a fund or project whose commitment to invest gives confidence to others to invest. CEFC cornerstone investments reflect its role in catalysing additional private sector investment in low emissions opportunities, including working together with institutional investors or dedicated venture capital opportunities. |
| Corporate facility or corporate loan | Typically, a loan to a company (rather than a specific project) for smaller-scale projects, or a bundle of projects, often secured against the assets or operations of the corporate entity. |
| Dollars ($) | All references to dollars are Australian dollars unless otherwise specified. |
| Ecologically sustainable development | A set of principles that corporations and government entities report against under the Environment Protection and Biodiversity Conservation Act 1999. |
| Energy efficiency technologies | Energy efficiency technologies, as defined in the CEFC Act, include technologies (including enabling technologies) that are related to energy conservation and demand management technologies. |
| Environment Protection and Biodiversity Conservation Act 1999 | Australian Government environmental legislation providing a legal framework to protect and manage nationally and internationally important flora, fauna, ecological communities and heritage places. |
| External benefits | Benefits that are enjoyed by parties outside a transaction e.g. emissions reduction that benefits the environment. |
| Forecast lifetime yield | The annualised weighted average of forecast income on outstanding principal balance over the life of the investment. |
| Government Policy Order | An instrument to direct government entities made under the PGPA Act. |
| Greenhouse gases | The six Kyoto Protocol classes of greenhouse gases are carbon dioxide (CO2-e), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulphur hexafluoride (SF6). |
| Grid Reliability Fund | The proposed $1 billion Grid Reliability Fund will support Australian Government investment in new energy generation, storage and transmission infrastructure, including eligible projects shortlisted under the Underwriting New Generation Investments (UNGI) program. |
| Hybrid technology | A combination of technologies that integrate a renewable energy generation technology with other technologies into a combined system. |
| Investment Mandate | A formal Ministerial Direction made under the CEFC Act which specifies conditions under which the CEFC may perform its investment function. |
| Key Management Personnel (KMP) | Key Management Personnel have the authority and responsibility for planning, directing and controlling the activities of the CEFC, directly or indirectly, including non-executive Board members, the CEO and other members of the senior Executive Team reporting to the CEO. |
| Lifetime abatement | The estimated amount of abated emissions over a project’s useful life. |
| Low emissions technology | The CEFC Board considers low emissions technologies on a case-by-case basis. See the Investment Guidelines on the CEFC website: www.cefc.com.au |
| Low Emissions Technology Statement (LETS) | Annual low emissions statements showing progress against the Technology Investment Roadmap, and used to focus Australian Government investment in new and emerging technologies. |
| Marginal Loss Factors (MLFs) | Marginal loss factors reflect the impact of electricity losses along the electricity network and are applied to market settlements in the National Electricity Market, affecting generator revenues. |
| National Australian Built Environment Rating System | A national ratings system that measures the environmental performance of a building or tenancy including energy efficiency, water usage, waste management and indoor environment quality. |
| Nationwide House Energy Rating Scheme | A national star-rating system that rates the energy efficiency of a home, based on its design. |
| National Electricity Market (NEM) | A regulated electricity trading market that interconnects the electricity grids of the States and Territories of New South Wales, Victoria, Queensland, South Australia, Tasmania and the Australian Capital Territory. |
| Portfolio Benchmark Return (PBR) | A long-term target rate of return established by the CEFC Investment Mandate, against which the performance of the CEFC investment portfolio is measured. |
| Positive externalities | Benefits which are not exclusive to the parties to a contract, such as an investment contract. May include reduced carbon emissions which benefit society as a whole. The CEFC Investment Mandate requires positive externalities be considered as part of CEFC investment decisions. |
| Power purchase agreement (PPA) | Also known as an offtake agreement, between an independent power generator and a purchaser/off-taker for the sale and supply of energy, such as solar and wind. |
| Project finance | Long-term financing of infrastructure and industrial projects (such as a utility scale generator or an onsite generation facility) which will be repaid from the projected cash flows of the project without recourse to the balance sheets of the sponsors. |
| Public Governance, Performance and Accountability Act (PGPA Act) | The PGPA Act establishes a coherent system of governance and accountability for public resources, with an emphasis on planning, performance and reporting. The PGPA Act applies to all Commonwealth entities and Commonwealth companies, including the CEFC. |
| Reef Funding Program | The Reef Funding Program is financing clean energy projects in the Great Barrier Reef Catchment Area, supporting delivery of the Reef 2050 plan and the long-term health of the Great Barrier Reef. CEFC finance is directed to eligible projects across renewable energy, energy efficiency and low emissions technologies. |
| Refinancing | Repayment of an existing loan with a new loan. |
| Renewable energy technologies | Clean energy technologies that are defined as ‘renewable energy technologies’ under the CEFC Act, and include hybrids that integrate renewable energy technologies, and technologies that are related to renewable technologies, including enabling technologies. |
| Renewable Energy Zones (REZ) | A REZ connects multiple renewable energy generators and battery storage facilities with transmission infrastructure in the same location to capitalise on economies of scale. |
| Roll-off | Investment amounts that exit the portfolio, through sale, repayment, cancellation of all or part of the facility, reduction in amount borrowed. |
| Senior debt | Debt that takes priority in repayment over other unsecured or more junior debt. |
| South West Interconnected System (SWIS) | The largest interconnected power system in Western Australia, delivering electricity to more than one million customers. |
| Special Account | A type of Australian Government account in which funds are held for a specified purpose. The CEFC Act creates a Special Account in order to fund the CEFC. |
| Subordinated debt | Where two or more financiers are involved in offering finance, one may take a ‘subordinated’ or ‘junior debt’ position relevant to the other (‘senior debt’) in the event of a loss (i.e. one financier may rank after the other financier in priority for recovery in the event the finance recipient becomes insolvent and cannot repay the loan). |
| Sustainable Cities Investment Program | Through the Sustainable Cities Program the CEFC invests in to accelerate the clean energy transition of Australia’s 50 largest cities, such as clean energy benefits to commercial, industrial and residential property, low emissions transport and cleaner infrastructure. |
| t CO2-e | Tonnes of carbon dioxide equivalent greenhouse gas. |
| Technology Investment Roadmap | An Australian Government strategy to accelerate the development and commercialisation of low emissions technologies. |
| Tenor | Length or term of a loan. |
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