The report examines Australia’s need for massive private investment to achieve its net-zero emissions target by 2050, requiring an estimated AUD1.5 trillion by 2030 and potentially AUD7-9 trillion by 2060. It analyzes the Clean Energy Finance Corporation (CEFC), Australia’s green bank with a AUD30.5 billion capital base, which achieved an impressive private capital mobilization rate of AUD5.02 for every public dollar in FY2022-23. While acknowledging CEFC’s success, the report argues its current debt and equity investment strategy may not adequately attract risk-averse institutional investors like superannuation funds with AUD1.3 trillion in private capital. The report recommends expanding CEFC’s role through credit enhancement mechanisms (like loan guarantees and subordinated debt) similar to successful international models such as the US Department of Energy’s USD25 billion guarantee program and the EU’s InvestEU fund, which could help attract Australia’s superannuation industry projected to reach AUD3 trillion by 2030.

Citation: