The Clean Energy Finance Corporation has increased its investment in the Artesian Green and Sustainable Bond Fund to $50 million, up from its initial investment of $25 million in 2021.
The parties are also increasing efforts to lift issuer disclosure and attract new investment capital.
Artesian is developing a new investor impact tool to provide investors with their own periodic impact report, so they can track the progress of emissions reduction activities. Artesian will also be expanding its own internal reporting tool, to assess the reporting frameworks on climate risk and financed emissions disclosures provided by underlying issuers.
The Artesian fund has also attracted investment from Australian private impact investment company, Tripple. Tripple has successfully backed a number of pioneers in clean energy and clean energy finance, including Amber, Brighte and Fable.
CEFC chief executive officer Ian Learmonth said: “This follow-on investment will be used to accelerate growth in the emerging green bonds sector, crowding-in third party capital with each dollar of CEFC investment to be matched by a minimum of $2 capital from third party investors.
“Importantly, our capital will also back Artesian as it continues to drive market leading measurement approaches with its issuers around climate-related disclosures. As the Australian green bond market matures, a stronger regime of issuer measurement and disclosure will attract the growing pool of investors who want to preference sustainability and low emissions opportunities in their portfolios, so we can accelerate decarbonisation and the transition to a net zero economy.”
Also read: CEFC Backs Artesian’s Green Bond Fund
Artesian chief investment officer, Matthew Clunies-Ross said: “Having the CEFC follow on from their initial investment is not only a great endorsement for the Fund, it will also enable Artesian to generate and support more Australian green bond issuance with this substantial additional capital.”
The CEFC is a specialist investor at the centre of efforts to help deliver on Australia’s ambitions for a thriving, low emissions future. The CEFC invests on behalf of the Australian Government, with a strong commitment to deliver a positive return for taxpayers across its portfolio.
The CEFC has been instrumental in the development of Australia’s green bond market since it began investing a decade ago. With more than $900 million invested in innovative green bonds across more than 20 bond products, the CEFC has helped increase private sector investment into a range of emissions reduction activities.
