Refers to reductions in CO₂-e emissions.

The provision of CEFC finance via co-finance intermediary partners, to aggregate customer demand that would otherwise be too expensive to be serviced directly by the CEFC.

The means by which money from the Treasury is made available to the Australian Government by the Parliament.

The enabling legislation which creates and empowers the CEFC.

The Clean Energy Innovation Fund is a specialist financier focused on early-stage clean energy companies. It draws on CEFC finance to provide primarily equity finance to innovative clean energy projects and businesses which involve renewable, energy efficiency and low emissions technologies. The Innovation Fund operates with the assistance of ARENA.

The types of technology the CEFC is permitted to invest in, which includes ‘renewable energy technologies’, ‘energy efficiency technologies’ and ‘low emissions technologies’ as defined in the CEFC Act.

A specific type of green bond issued by the Climate Bond Standards and Certification initiative.

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.

CEFC finance is indirectly provided to end users via a third party, such as a bank or financial institution. The CEFC develops products with co-financiers to leverage their capital and customer networks. These products can be distinguished from a direct CEFC loan where the finance moves directly from the CEFC to the project owner.

Where the CEFC has made a commitment to invest funds if all necessary pre-conditions are fulfilled by the counterparties.

Concessionality is defined by the Investment Mandate and 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 investors are usually large institutional investors, or reputable individuals of substance, whose early stage involvement in an investment signals to the market that an opportunity may be worthwhile for other investors to also consider.

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.

All references to dollars are Australian dollars unless otherwise specified.

A set of principles that corporations and government entities must report against under the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act).

Energy efficiency technologies, as defined in the CEFC Act, include technologies (including enabling technologies) that are related to energy conservation and demand management technologies.

The Australian Government’s central piece of environmental legislation, which provides a legal framework to protect and manage nationally and internationally important flora, fauna, ecological communities and heritage places.

Benefits that are enjoyed by parties outside a transaction e.g. emissions reduction that benefits the environment.

The annualised weighted average of forecast income on outstanding principal balance over the life of the investment.

An instrument to direct government entities made under the PGPA Act.

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).

A combination of technologies that integrate a renewable energy generation technology with other technologies into a combined system.

A formal Ministerial Direction made under the CEFC Act which specifies conditions under which the CEFC may perform its investment function.

Key Management Personnel (KMPs) are Board Members and staff who 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.

In reference to renewables, a power station large enough to earn certificates under the LRET (i.e. above 100kW for solar PV).

Tradeable certificates created under Section 17 of the Renewable Energy (Electricity) Act 2000. One LGC is equivalent to 1MWh (megawatt hour) of eligible renewable electricity produced by an accredited renewable power station above its baseline.

The LRET creates a financial incentive for the establishment or expansion of renewable energy power stations, such as wind, solar farms and hydro-electric power stations. It does this by legislating demand for Large-scale Generation Certificates (LGCs). One LGC can be created for each megawatt hour of eligible renewable electricity produced by an accredited renewable power station.

The estimated amount of abated emissions over a project’s useful life.

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.

Marginal Loss Factors (MLFs) modify the revenue received by electricity generators to reflect electricity ‘lost’ along the transmission and distribution networks. MLFs are calculated by AEMO annually under the National Electricity Rules.

In respect of renewable energy generation, energy sold onto the spot market without the benefit of a fixed price power purchase agreement where the price received is the prevailing market price at the time of sale.

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.

A national star rating system that rates the energy efficiency of a home, based on its design.

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 ACT.

A COAG Energy Council agreed package of measures to improve Australia's energy productivity by 40 per cent between 2015 and 2030.

Not connected to the electricity grid, such as in remote areas.

An agreement between a producer (of energy or crops) and a purchaser to purchase production output for a defined period at a defined price.

Other Highly Paid Staff (OHPS) are CEFC employees (excluding KPMs and senior executives) whose total remuneration exceeds the $220,000 threshold for the 2018–19 year.

A type of technology that converts energy from the sun into electricity, as in solar PV.

A long-term target rate of return established by the CEFC Investment Mandate, against which the performance of the portfolio invested by the Corporation is measured.

Benefits which are not exclusive to parties to a contract, such as an investment contract. May include reduced carbon emissions which benefit society as a whole. It is a requirement of the CEFC Investment Mandate that positive externalities be considered when the CEFC makes investment decisions.

A type of offtake agreement where a purchaser agrees to purchase and a supplier agrees to supply future generated electricity, usually at a specified price for a defined period.

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.

The ‘proposers’ or owners of a given project, as distinct from the project financiers.

An Act about the governance, performance and accountability of, and the use and management of public resources by, the Commonwealth, Commonwealth entities and Commonwealth companies, and for related purposes.

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.

Repayment of an existing loan with a new loan.

A target for the production of electricity from renewable energy sources under the Renewable Energy (Electricity) Act 2000. Made up of the small-scale renewables scheme (SRES) and the large-scale target (LRET).

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.

Areas in the NEM where clusters of large-scale renewable energy can be efficiently developed, promoting economies of scale in high-resource areas, capturing important benefits from geographic and technological diversity in renewable resources, and recognising the critical physical must-have requirements for power system security.

Investment amounts that exit the portfolio (e.g. by sale, repayment, cancellation of all or part of the facility, reduction in quantum borrowed etc).

Debt that takes priority in repayment over other unsecured or more junior debt.

The largest interconnected power system in Western Australia, the South West Interconnected System (SWIS) incorporates over 7,800 Kilometres of transmission lines, 5,798MW of registered generation capacity (including 513MW of non-scheduled generation), providing 18 terawatt hours of electricity supply each year to serve more than one million customers.

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.

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).

Through the Sustainable Cities Investment Program, the CEFC invests to accelerate the development and deployment of a broad range of clean energy projects in Australia’s 50 largest cities, from Alice Springs with 25,000 people; to Sydney, Australia’s largest city, at some 5.1 million people.

Tonnes of carbon dioxide equivalent greenhouse gas.

Length or term of a loan.

Total remunerative benefits for staff including salary, superannuation and any other benefits.

Administrative Arrangements Orders

Australian Accounting Standards

Australian Accounting Standards Board

Australian Energy Market Operator

Australian Energy Market Commission

Australian Industry Participation Plans

Anti-Money Laundering and Counter-Terrorism Financing Act 2006

Australian National Audit Office

Australian Renewable Energy Agency

Australian Securities Exchange

Bloomberg New Energy Finance

Clean Energy Finance Corporation

Clean Energy Finance Corporation Act 2012

Carbon dioxide

Concentrated solar power

Employee Assistance Program

Equal Employment Opportunity (Commonwealth Authorities) Act 1987

Export Finance and Insurance Corporation

Environment Protection and Biodiversity Conservation Act 1999

Emissions Reduction Fund

Ecologically sustainable development

Fringe benefits tax

Freedom of Information Act 1982

Public Governance, Performance and Accountability (Financial Reporting) Rule 2015

Full-time equivalent

Financial assets at fair value through profit and loss

General government sector

Greenhouse gases

Green Investment Group

Government Policy Order

Goods and Services Tax

Gigawatt

Gigawatt hour

Held to maturity

Information Publication Scheme

Joint Committee of Public Accounts and Audit

Key Management Personnel

Key performance indicators

Kilowatt

Kilowatt hour

Light emitting diode

Marginal Loss Factors

Member of Parliament

Megawatt

Megawatt hour

National Australian Built Environment Rating System

Northern Australia Infrastructure Fund

National Electricity Market

National Energy Productivity Plan

Non-Governmental Organisation

Other highly paid staff

Parliamentary Budget Office

Portfolio Benchmark Return

Portfolio Budget Statement

Public Governance, Performance and Accountability Act 2013

Public Interest Disclosure Act 2013

Power Purchase Agreement

Public Private Partnership

Photovoltaic

Renewable Energy Target

Renewable Energy Zone

South West Interconnected System

Total Annual Remuneration Package

Work, Health and Safety Act 2011