Australia, with its abundant natural resources and commitment to a clean energy transition, faces a critical need for innovative financing solutions to tackle the climate emergency. Social impact investing (SII) has emerged as a powerful tool for channeling capital towards projects that generate both financial returns and positive social and environmental impact. This introductory guide explores the potential of SII to accelerate climate action and renewable energy project funding within the Australian context, and how both organisations and individuals can invest in climate projects that make a difference.
What is Social Impact Investing?
Social impact investing goes beyond traditional investment approaches by explicitly considering the social and environmental impact alongside financial returns. It acknowledges that capital can be a force for good, addressing pressing societal challenges while generating profit. SII investments target specific outcomes, such as reducing carbon emissions, improving access to clean energy, or creating sustainable jobs. Unlike philanthropy, which prioritises impact over financial return, SII seeks a blended value proposition – a return on investment coupled with measurable positive change.
SII encompasses a wide range of investment strategies, including:
- Impact-first investments: These prioritise social and environmental impact, accepting potentially lower financial returns.
- Return-first investments: These prioritise financial returns while still seeking positive social and environmental impact.
- Mission-related investments: These are investments made by foundations or other charitable organisations to advance their mission.
SII can take various forms, including debt, equity, and guarantees, and can be directed towards diverse sectors.
How Social Impact Investing Can Be Used for Climate Action & Renewable Energy Projects
Climate change demands urgent and substantial investment in clean energy technologies and climate mitigation strategies. SII offers a compelling mechanism to mobilise private capital towards these critical areas. Specifically, SII can be used to fund:
- Renewable energy projects: SII can finance the development, construction, and operation of solar, wind, hydro, and other renewable energy projects, accelerating the transition away from fossil fuels.
- Energy efficiency initiatives: Investments in energy efficiency upgrades for homes and businesses can reduce energy consumption and greenhouse gas emissions.
- Clean technology innovation: SII can support the development and commercialisation of new clean technologies, such as battery storage, smart grids, and other emerging innovations.
- Climate resilience & adaptation projects: SII can fund projects that help communities adapt to the impacts of climate change, such as infrastructure improvements, drought-resistant agriculture, and coastal protection.
- Sustainable infrastructure: Investments in sustainable transportation, green buildings, and other infrastructure projects can reduce carbon emissions and promote resilience.
By providing flexible and patient capital, SII can bridge the funding gap for climate-related projects, particularly those that may be considered too risky or have longer payback periods by traditional investors.
The Benefits of Social Impact Investing for Individuals & Society
SII offers a range of benefits for both individual investors and society as a whole:
For Individuals:
- Alignment with values: SII allows individuals to align their investments with their personal values and contribute to a more sustainable future.
- Potential for financial returns: While impact is a key consideration, SII also offers the potential for financial returns.
- Diversification: SII can provide diversification benefits to investment portfolios, as it often targets sectors that are uncorrelated with traditional asset classes.
- Transparency & accountability: Impact reporting and measurement provide investors with insights into the social and environmental outcomes of their investments.
For Society:
- Addressing climate change: SII can accelerate the deployment of clean energy technologies and climate mitigation strategies, contributing to global efforts to combat climate change.
- Creating jobs: Investments in renewable energy and other sustainable industries can create new jobs and stimulate economic growth.
- Improving community well-being: SII can support projects that improve access to clean energy, reduce pollution, and enhance community resilience.
- Promoting innovation: SII can fund the development and commercialisation of new clean technologies, driving innovation in the sustainable energy sector.
Examples of Social Impact Investing in Australia for Climate Action & Renewable Energy Projects
Australia is witnessing a growing number of SII initiatives focused on climate action and renewable energy. Examples include:
- Clean Energy Finance Corporation (CEFC): The CEFC is a government-owned institution that invests in clean energy projects across Australia, including large-scale solar and wind farms, energy efficiency upgrades, and clean technology innovation. They operate with a commercial focus, seeking to generate a positive return on investment while achieving significant emissions reductions.
- Impact Investment Funds: Several impact investment funds in Australia focus specifically on climate solutions, investing in renewable energy companies, energy efficiency projects, and other climate-related ventures. These funds often attract impact-conscious investors seeking both financial returns and positive environmental impact.
- Startup Accelerators – An Australian example is Energy Lab, who connect talented founders addressing the global climate crisis to the mentors, advisors, partners, peers and investors they need to succeed.
- Community Energy Projects: Local communities are increasingly developing their own renewable energy projects, often with the support of social impact investors. These projects can provide local jobs, reduce energy costs, and promote community ownership of clean energy infrastructure.
How to Get Started with Social Impact Investing
Getting started with SII can seem daunting, but there are several resources available to guide investors:
- Research and education: Learn about different SII strategies, impact measurement frameworks, and investment opportunities. Numerous online resources, reports, and industry events can provide valuable information.
- Identify your impact goals: Determine the specific social and environmental issues you are most passionate about, such as climate action, renewable energy, or sustainable development.
- Explore investment options: Research different SII investment platforms, funds, and individual projects. Consider factors such as minimum investment amounts, risk tolerance, and impact measurement methodologies.
- Seek professional advice: Consult with a financial advisor who specialises in SII to develop an investment strategy that aligns with your goals and risk profile.
- Due diligence: Carefully evaluate potential investments, considering both financial and impact performance. Review impact reports and assess the credibility of the organisations or projects you are considering.
Aside from Social Impact Investment there are many other ways you can put your capital to work for a safer climate.
Choosing Sustainable & Ethical Superannuation Funds
For many Australians, superannuation represents a significant long-term investment. Choosing a sustainable and ethical superannuation fund is a powerful way to personally engage in social impact investing and contribute to a more sustainable future. These funds consider environmental, social, and governance (ESG) factors in their investment decisions, actively avoiding companies involved in harmful activities such as fossil fuel extraction, tobacco production, or weapons manufacturing.
Here’s how individuals can choose a sustainable and ethical superannuation fund:
- Research and compare: Explore different superannuation funds and their investment strategies. Look for funds that have a strong commitment to ESG principles and transparent reporting on their impact. Websites like Responsible Investment Association Australasia (RIAA) provide resources and ratings for ethical funds.
- Check for certifications and labels: Look for funds that have certifications or labels from reputable organizations, such as the RIAA’s Responsible Investment Certification. These certifications indicate that the fund meets certain standards for ethical and sustainable investing.
- Review the fund’s investment portfolio: Examine the fund’s holdings to ensure that they align with your values. Look for funds that invest in renewable energy, sustainable agriculture, and other environmentally and socially responsible sectors.
- Consider divestment policies: Check whether the fund has a policy of divesting from companies engaged in harmful activities, such as fossil fuels.
- Engage with your superannuation fund: Ask your superannuation fund about their ESG policies and investment practices. Encourage them to adopt more sustainable and ethical investment strategies.
By actively choosing a sustainable and ethical superannuation fund, individuals can ensure that their retirement savings are contributing to a better future for both themselves and the planet.
Divesting from Fossil Fuels
Another way to use your capital for good is divesting from organisations that cause harm. Divestment involves pulling your money out of industries or companies that heavily rely on fossil fuels, coal, and other non-renewable resources. This encourages the reallocation of capital toward more sustainable sectors.
This might include shifting your investments, loans, and superannuation to a fund that doesn’t invest in fossil fuels or participate in other harmful practices. Market Forces is a fantastic resource where you can find out your bank or super fund’s level of involvement in fossil fuels.
Carbon Offsetting & Carbon Credits
We always encourage organisations and individuals to reduce their carbon footprint as much as possible before offsetting their carbon emissions.
Learn more in Climate Action Guide: How Individuals & Households Can Tackle the Climate Emergency.
For those unavoidable carbon emissions, you may like to invest in carbon credits that fund projects aimed at reducing or removing greenhouse gases, such as reforestation, renewable energy projects, or methane capture.
Advocacy & Policy Influence
Use capital to support organisations or initiatives focused on advancing climate policy or promoting a just transition to a low-carbon economy. Some great examples of this in Australia include the Climate Council, Rewiring Australia, and Parents for Climate.
Help Non Profits & Community Organisations: Donate to a Climate Charity Social Impact Fund
Here at CORENA, we provide an innovative revolving fund model that helps finance non profit and community organisations who wish to reduce their carbon footprint and improve their energy efficiency, but cannot afford the upfront expense. Our fund ensures that these kinds of climate projects get the funding that they need in order to get off the ground and become part of the renewable energy transformation.
CORENA offers a zero-interest loan, and it is repaid using the savings made on operating costs afforded by the low running costs of the project over the long term. Join Australia’s renewable energy revolution and help to finance projects in your community by donating to our revolving fund. We play a role in supporting all kinds of climate projects, from getting off gas to solar power and electric vehicles.
The Australian landscape for climate action and renewable energy is dynamic and evolving. As awareness of the potential of SII grows, and as more robust impact measurement frameworks are developed, it is expected that this form of investment, will play an increasingly crucial role in financing Australia’s transition to a clean energy future and addressing the urgent challenges of climate change. By aligning capital with purpose, SII empowers individuals and institutions to contribute to a sustainable and prosperous future for Australia and the world.
Learn more in Climate Action Guide: How Individuals & Households Can Tackle the Climate Emergency
Why Making a Donation to the Citizens Own Renewable Energy Network Australia (CORENA) is High Impact
As the global conversation on climate change intensifies, there has never been a better time to invest in solutions that promote sustainable energy practices. One such impactful initiative is the Citizens Own Renewable Energy Network Australia (CORENA), a registered charity that empowers communities to take control of their energy future through the development and operation of renewable energy projects. For individuals or institutions considering a significant charitable donation, supporting CORENA is not just a tax-deductible donation – it’s an investment in the future of our planet, local communities, and the global transition to clean energy.
Here’s why making a major donation to CORENA can have a profound impact:
1. Empowering Communities to Own Their Energy Future
One of the most powerful aspects of CORENAs approach is its focus on community ownership. By supporting the development of renewable energy projects that are owned by local communities, CORENA is putting control back into the hands of the people who are most affected by energy policies and practices. These projects allow communities to generate their own power, reduce reliance on fossil fuels, and take charge of their energy needs. This community-driven model ensures that the benefits of renewable energy—lower costs, energy security, and environmental sustainability—are felt directly by those who contribute to and benefit from the projects.
See examples in CORENA’s Projects
A donation not only helps a project of your choice, it also allows us to scale this model, allowing CORENA to expand its efforts.
2. Contributing to the Global Transition to Clean Energy
The world is at a crossroads when it comes to energy consumption. With increasing demand for power and the adverse effects of climate change becoming undeniable, the transition to renewable energy sources is no longer a choice – it’s an imperative. CORENA plays a critical role in this transition by developing renewable energy projects that directly replace fossil-fuel-based energy with solar, wind, and other sustainable alternatives.
A donation helps CORENA invest in the development of new renewable energy projects. This makes it possible for more communities to harness the power of the sun and wind, reducing global reliance on polluting energy sources and contributing to a cleaner, more sustainable planet.
Learn more in Australia’s Renewable Energy Revolution
3. Supporting Environmental Justice & Equity
CORENA’s work is inherently tied to the principles of environmental justice. Many marginalised communities, especially in rural and remote areas, are disproportionately affected by energy poverty and environmental degradation. The high cost of energy or lack of access to affordable energy keeps many communities trapped in a cycle of poverty and dependency on harmful energy sources. CORENA’s renewable energy projects help lift these organisations and the communities they serve by providing sustainable, affordable energy solutions.
A major donation ensures that CORENA can reach the people who need it the most. It allows the organization to create more energy access initiatives that can tackle both environmental and socio-economic challenges, advancing social justice by ensuring that clean energy is available to all, not just those who can afford it.
4. Fostering Economic Development
Renewable energy is not only good for the planet—it’s also a driver of economic growth. By supporting CORENA, donors are helping to create green jobs, stimulate local economies, and reduce energy costs for businesses and households alike. Renewable energy projects require skilled labor for installation, maintenance, and operation, which opens up a new set of employment opportunities. Additionally, with the cost of energy production decreasing over time, the long-term savings from renewable energy can help strengthen the economic resilience of communities.
Your donation can help provide the initial funding needed to kickstart these projects, which in turn creates a sustainable model for ongoing economic development. It’s a win-win—reducing costs, fostering innovation, and strengthening local economies.
5. A Sustainable Legacy
When you make a major donation to CORENA, you’re contributing to a long-lasting legacy. Renewable energy projects have long lifespans and will generate power, save money, and reduce emissions for years to come. Not only that but the loan repayments are used to source, support and provide further loans to future projects meaning your donation is used over and over again.
By funding CORENA’s initiatives, you’re ensuring that your contribution will create positive, long-term change for communities and the environment. It’s a chance to be part of something bigger than yourself—leaving a lasting impact on the world’s renewable energy infrastructure and helping to shape a more sustainable, equitable future.
6. Supporting Innovation & Scalability
CORENA isn’t just about creating isolated renewable energy projects. The charity also focuses on innovation—working to develop new technologies, business models, and financing solutions that can make renewable energy more accessible, affordable, and scalable. CORENA’s projects are often at the cutting edge of what’s possible in renewable energy, testing new systems and approaches that can be replicated across a wide range of communities.
A significant donation helps accelerate CORENA’s capacity to innovate and scale these projects. It allows for the testing and deployment of new technologies that can be replicated in other regions, multiplying the impact of your gift across the globe.
Learn more in Green Energy Innovations & Emerging Renewable Technologies
7. Tax Benefits and Transparency
For individuals or organisations looking to make a high-impact charitable donation, CORENA offers transparency, accountability, and the potential for tax deductions (depending on your jurisdiction). CORENA is a registered charity with the ACNC and has DGR status. The charity’s transparency in how funds are spent ensures that your donation will be directed to impactful, sustainable projects.
8. The Power of CORENA’s Revolving Energy Fund
A standout feature of CORENA’s approach is its Revolving Energy Fund, which allows your donation to continue working for years to come. Unlike traditional funding models, where donations are spent once and are exhausted the Revolving Energy Fund is a unique model that enables the charity to reinvest the funds into additional renewable energy projects. The way it works is simple: once a community-based project is funded and operational, the savings or profits generated from the renewable energy project are then reinvested into new projects, creating a cycle of ongoing impact.
For example, a community solar project might reduce energy bills for its users, and the savings from those bills can be reinvested into expanding the network to other communities. This self-sustaining model multiplies the value of every dollar donated, ensuring that your donation has an exponentially greater impact over time. The Revolving Energy Fund maximises efficiency and ensures that funds continue to flow into new projects, creating a continuous ripple effect of positive change.
By donating to CORENA, you’re not just supporting one project – you’re contributing to a sustainable, long-term solution that grows and expands, generating even more value in the future.
Conclusion: A Gift That Keeps on Giving
Making a donation to the Citizens Own Renewable Energy Network Australia isn’t just a charitable act; it’s an investment in the future. You are helping to create a world where communities take control of their energy, where renewable energy becomes the norm, and where environmental justice is a reality for all. Your contribution can help foster economic growth, tackle climate change, and ensure that future generations inherit a planet that is not only habitable but thriving.
In the fight against climate change and energy inequality, every donation counts. But a major donation to CORENA, particularly through the Revolving Energy Fund, is an especially powerful way to make a tangible, lasting difference. Whether you’re an individual philanthropist, a business leader, or a foundation, investing in CORENA is a high-impact decision that will continue to deliver benefits for generations to come.
Major Donations: If you are an individual or representing an organisation, who would like to help with Major Gifts and Corporate Donations, please complete our major donor form.