Document ID: chunk:federal_register_of_legislation:F2023L01023:body:0:p6
Version: federal_register_of_legislation:F2023L01023
Segment Type: other
Provision Reference: 
Character Range: 13996–16949

reflects the mark-to-market valuation of loans made that financial year and should be measured as the difference between the present value of each loan at market rates and the present value of each loan at the given concessional rate.
    16.        Specialised Investment Funds

      (1)    Clean Energy Innovation Fund:
Funding
The Board shall make available up to $200 million for investments in emerging clean energy technology projects and businesses that involve technologies that have passed beyond the research and development stages but are not yet established or of sufficient maturity, size or otherwise commercially ready to attract sufficient private sector investment.
Investment factors
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 its investments.
In considering investment proposals under the Clean Energy Innovation Fund, the Board must take into account the advice of ARENA as to:
        (a)   whether the proposal is recommended for support under the Fund; and
        (b)   the technical and commercial feasibility of the project technology; and
        (c)   the competitive environment of businesses seeking to deploy the technology.
Benchmark rate of return
In relation to investments made for the purposes of the Clean Energy Innovation Fund, the Board must target an average return of at least the 5-year Australian Government bond rate +1 per cent per annum over the medium to long term. 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.
Risk level
In targeting the benchmark return for the Clean Energy Innovation Fund and operating with a commercial approach, the Board must seek to develop a portfolio 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 this subsection.
The level of risk deemed acceptable by the Board may be higher for the Clean Energy Innovation Fund than for the General Portfolio. This reflects the differences in the types of investments being made for the purposes of the Clean Energy Innovation Fund.
The Board, in consultation with ARENA, must periodically review its investment practices for the purposes of managing the risk of the Clean Energy Innovation Fund portfolio over time and must advise the responsible Ministers of specific measures taken in this regard.
      (2)    Advancing Hydrogen Fund:
Funding
The Board shall make available up to $300 million in concessional finance to support the growth of a clean, innovative, safe and competitive Australian hydrogen industry. The Advancing Hydrogen Fund will focus on projects where there is State or Territory Government financial support or policy alignment with the National