ISCOVER
The government-owned ‘green’ bank has reported a record-breaking result from activity during the previous financial year.
The Clean Energy Finance Corporation (CEFC) has celebrated a record-breaking year, celebrating $4.7 billion in commitments in the financial year ending 30 June 2025 (FY25), roughly 2.5 times what it had committed in the 12 months prior.
This investment included $610 million in green loan products through the Household Energy Upgrades Fund (HEUF) in its second year.
As part of the HEUF, the CEFC partners with lenders to deliver discounted financial products that help consumers improve their homes’ energy performance with upgrades, such as solar panels or better insulation.
Several lenders have partnered with the CEFC on green loan offerings during the past year, including Westpac, ING, and Metro Finance.
During FY25, the HEUF committed $305 million across four major transactions, according to the CEFC.
Since its inception, the CEFC has made lifetime commitments of $18.3 billion, driving $85.3 billion committed to clean energy projects.
CEFC CEO Ian Learmonth said the investments are helping Australia position itself positively in the global competition for capital.
“While the economy-shaping impact of our larger-scale transactions is clear, the full story of CEFC investment activity this year demonstrates that we are delivering for taxpayers, with direct and immediate benefit in homes and small businesses, for vehicle owners and on farms,” he said.
“By providing access to discounted CEFC finance, we are paving the way for an increasing number of Australians to cut their individual carbon footprint in their everyday activities – and tapping into growing consumer sentiment in favour of measures to address climate change.”
Learmonth also commented on the growing importance of providing vehicles for clean energy affordability for consumers.
“This poses a once-in-a-generation challenge as well as an economic opportunity. 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,” he added.
“With CEFC investment leading the way, the country can continue to benefit from Australia’s abundant clean energy resources.”
Growing opportunity for brokers
Green finance remains a relatively small segment of the broader lending market for now, but the nuances of these loans provide plenty of opportunities for brokers.
Speaking to The Adviser for a feature in its upcoming August edition, Amy Beattie, director of brokerage Good Green Home Loans, said she’s observed an increase in the number of leads she received from clients driven by climate concerns.
“The clients tend to be ethically driven consumers concerned about climate change and the impacts it is having in their own backyard and globally,” Beattie notes.
“They don’t know where to start when it comes to adding a layer of thought around which banks are the most ethical, or the most environmentally aware when it comes to choosing the most suitable home loan.”
Beattie encouraged any broker who wants to write green finance to do their homework and understand the credentials of relevant lenders.
“Consumers seeking these loans see it as one of the most important factors for them; above many things that the average consumer rates as the most crucial. Every aspect of their life involves a level of consideration about the negative impacts of that choice,” she said.
“They want brokers to understand and at least know where to start when it comes to applying a values-based filter to your lending panel.”
[Related: Government announces major investments in housing supply and green bank]
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