Document ID: chunk:federal_register_of_legislation:F2023L01023:body:0:p2
Version: federal_register_of_legislation:F2023L01023
Segment Type: other
Provision Reference: 
Character Range: 2773–5841

investing in businesses or projects for the development or commercialisation of, or in relation to the use of, clean energy technologies; and
        (b)   investing in businesses that supply goods or services needed to develop or commercialise, or needed for use in, clean energy technologies; and
        (c)   giving guarantees in accordance with section 69 of the Act.
The facilitation of the object includes supporting activities and projects that may not otherwise proceed or bringing forward these activities or projects. The investments covered by paragraph (b) have particular importance for supporting resilient clean energy supply chains and enhancing sovereign capacity to deliver on both short and long term emissions reduction targets.
This direction tasks the Board to deliver on this purpose through:
        (a)   the Rewiring the Nation Fund; and
        (b)   Specialised Investment Funds; and
        (c)   General Portfolio investments.
Together with other Commonwealth, State and Territory policies and programs, the Corporation's investments will contribute to both Australia's greenhouse gas emissions reduction targets and the target of achieving 82 per cent renewable electricity in Australia's electricity grids by 2030. These investments to facilitate a clean energy economy will also deliver enhanced employment opportunities, particularly in regional Australia.
    6.             Investment factors – General

Consistent with the obligation to deliver on the object of the Act, the Board must have regard to positive externalities and public policy outcomes for all investments.
For the General Portfolio, the Board must, when making investment decisions:
        (a)   apply commercial rigour; and
        (b)   have regard to the potential effect of the proposed investment on other market participants.
         Note: The investment factors for each Sub-Fund are set out in sections 15 and 16 of this direction.
    7.             Benchmark rate of return – General Portfolio

For the General Portfolio, the Board must target an average return of at least the 5-year Australian Government bond rate + 2 per cent to + 3 per cent per annum over the medium to long term as the benchmark return. Performance against this benchmark will be measured before operating expenses and any concession charges, such as impairment or mark-to-market adjustments resulting from any concessional component.
         Note: The benchmark return for each Sub-Fund is set out in sections 15 and 16 of this direction.
    8.             General Portfolio risk

For the General Portfolio, in targeting the benchmark return specified in section 7 of this direction and operating with a commercial approach, the Board must seek to develop a General Portfolio across the spectrum of clean energy technologies that in aggregate has an acceptable but not excessive level of risk, having regard to the terms of the Act and the focus on particular areas identified in section 14 of this direction.
The Board must periodically review its investment practices for