Australia’s Clean Energy Finance Corporation (CEFC) has announced a record investment of A$3.5 billion (US$2.29 billion) in clean energy projects and electricity grid infrastructure during the 2024–25 financial year, more than doubling its commitment from the previous year.
The funding forms part of a broader A$4.7 billion commitment aimed at accelerating the country’s transition from fossil fuels to renewable energy sources. The CEFC, which manages a A$32.5 billion mandate, plays a central role in directing capital into Australia’s clean energy sector and supporting national greenhouse gas reduction targets.
Among the largest commitments was a A$2.8 billion investment in a programme to upgrade the national power grid, including A$2.1 billion allocated to the construction of a new transmission link on Australia’s east coast.
Australia, one of the world’s highest per-capita carbon emitters due to its reliance on coal-fired power, has pledged to close all coal power stations by 2038 and reach 82% renewable electricity generation by 2030. However, independent forecasts suggest the country remains off pace. Energy consultancy Wood Mackenzie estimates Australia is currently on track to reach only 58% renewable generation by the end of the decade.
CEFC Chief Executive Ian Learmonth acknowledged the challenges ahead, stating: “Australia requires ongoing investment in renewables and long-duration storage, clean energy affordability for consumers, and measures to cut emissions. Investment activity at this scale promises substantial economic and local employment benefits across Australia, strengthening our economy for a net zero future while making critical progress towards decarbonisation.”
The CEFC said its increased investment is aimed at helping Australia close the gap between current trends and its renewable energy and net-zero ambitions by 2050. Analysts have warned that without greater investment, energy security and emissions targets could be at risk.
