Australia’s specialist climate investor Clean Energy Finance Corporation (CEFC) has committed AU$70 million towards infrastructure that will help decarbonise two of the country’s highest-emitting sectors- energy and transport.
The CEFC said the investment in the QIC Global Infrastructure Fund II (QGIF II), managed by infrastructure investor QIC, will accelerate the transition to net zero by driving down emissions across the entire value chain.
A key focus of the investment will be infrastructure supporting the energy transition, including smart metering, decarbonisation of transport and renewable generation.
The fund will further build on QGIF I’s net zero commitments for Scopes 1 and 2 by 2040, by establishing greenhouse gas emission reduction targets at each portfolio company validated by the Science Based Target Initiative.
CEFC Head of Infrastructure, Julia Hinwood said: “This investment is about accelerating sectors that are critical to the energy transition and driving change where it matters most.
“The CEFC is supporting key infrastructure assets that enable decarbonisation and industries that are challenging to decarbonise.
“By targeting the infrastructure that underpins our energy and transport systems, we’re helping to accelerate the lowering of emissions across the broader Australian economy.”
The fund will embed sustainability standards across the portfolio, lifting decarbonisation standards to target Scope 3 emissions. Portfolio companies will work with suppliers and providers to drive down emissions across asset value chains.
Decarbonising hard-to-abate industries such as heavy industry and infrastructure is a critical part of Australia’s net zero transition, as their production processes are energy-intensive, release carbon as a byproduct or both.
The CEFC has already committed more than AU$600 million across infrastructure funds and platforms, influencing national infrastructure assets including airports, energy companies and health services.
The CEFC has also invested AU$50 million into the QIC Everyday Retail Fund to drive decarbonisation efforts across a portfolio of shopping centres and the retail sector.
