Asset finance programs deliver
Transforming smaller-scale investments
The specialist CEFC asset finance program continued to evolve in 2020–21, with this innovative investment model being adopted by other financial institutions. These CEFC investments are made through the provision of wholesale debt facilities to co-financiers, with the benefits of the discounted CEFC finance passed on to their customers – an effective mechanism to extend the reach of our finance to smaller-scale investors.
Eligible projects range from small-scale rooftop solar and battery storage to energy efficient manufacturing and farm equipment, as well as building insulation, heating and cooling, demand management systems and low emissions vehicles. Investors have included small businesses, agribusiness, property and manufacturing.
We saw a slight contraction in activity during the reporting year, reflecting the low interest rate environment and the dampening effect of the pandemic. Nevertheless, with 5,800 projects delivering new investment of $175 million in 2020–21, the programs continued to contribute to economic activity and emissions reduction.
The success of these CEFC programs has seen co-financiers and other providers increasingly deploy funds into these smaller-scale clean energy investments. This has included referencing the CEFC model, where borrowers are incentivised to choose best-in-class low emissions options for new equipment purchases, property fit-outs and fleet vehicle replacements.
As this market progresses, the CEFC is continuing to develop alternative wholesale finance products to facilitate emissions reductions in more challenging sectors, through new markets and business models, and with new market entrants.
Investing in clean energy assets
2020–21
~5,800
Projects
|
Lifetime commitments
~23,700
Projects
|
|
$175m
CEFC commitments
|
$1.4b
CEFC commitments
|