Energising Australia's green bank: How the CEFC could catalyse massive private capital for net zero transition

Australia’s net zero ambitions will require significant public capital to mobilise the massive investments necessary. • IEEFA believes expanding the role of the Clean Energy Finance Corporation (CEFC) could address financial market inefficiencies, reduce risk and stimulate private capital, while avoiding a counterproductive competition with overseas initiatives such as those in the US or the EU. • The CEFC’s current strategy, primarily based on debt and equity co-investments, may struggle to attract sufficient levels of investment, and there is a need for new risk capital solutions to significantly accelerate private capital mobilisation.