Herbert Smith Freehills Kramer has advised the Clean Energy Finance Corporation on its A$70 million equity commitment to the QIC Global Infrastructure Fund II. The investment is intended to accelerate decarbonisation across the energy and transport sectors through infrastructure aligned with Australia’s energy transition priorities.

The commitment positions the CEFC as a strategic investor in QGIF II, which will target assets supporting renewable generation, smart metering systems, and low-emissions transport solutions. The transaction builds on the CEFC’s broader mandate to mobilise private capital into climate-aligned infrastructure and clean energy initiatives.

Embedding Sustainability Standards Across the Portfolio

QGIF II has committed to implementing binding sustainability requirements across its portfolio companies. The fund will pursue decarbonisation strategies that extend beyond direct operational emissions, with a focus on addressing scope 3 emissions through supplier engagement and value chain optimisation.

This approach reflects increasing investor scrutiny on indirect emissions and lifecycle impacts within infrastructure assets. By incorporating sustainability standards into governance frameworks at the fund level, QGIF II aims to elevate decarbonisation performance across energy and transport-related investments.

The CEFC’s participation is aligned with its objective of catalysing capital flows into projects that demonstrate measurable climate impact while maintaining commercial discipline.

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Continuity with Earlier Infrastructure Investments

The A$70 million investment follows the CEFC’s earlier A$72 million commitment to the predecessor fund, QIC Global Infrastructure Fund I. QGIF I established a target of achieving net zero scope 1 and scope 2 emissions across its portfolio by 2040, reinforcing a structured pathway toward emissions reduction within infrastructure holdings.

Herbert Smith Freehills Kramer also advised the CEFC on the prior QGIF I investment, indicating continuity in legal advisory support across successive infrastructure vehicles.

Broader Advisory Relationship with CEFC

The law firm has acted for the CEFC on multiple transactions spanning real estate, infrastructure, and environmental funds. These include investments in Scape Australia’s Scape Core Fund, Real Estate Credit Partners IV construction debt facilities, Mirvac’s build-to-rent venture, Pacific Equity Partners’ Secure Assets Fund II, Adamantem’s Environmental Opportunities Fund, and Macquarie’s infrastructure platforms.

Additional mandates have involved the Australian Renewables Income Fund, Morrison & Co’s Growth Infrastructure Fund, agricultural transition initiatives managed by Gunn Agri Partners, and commercial property funds managed by Investa and Mirvac.

This portfolio of transactions illustrates the CEFC’s diversified strategy across infrastructure and real assets, targeting sectors where capital deployment can support emissions reduction while delivering institutional-grade returns.

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Infrastructure as a Lever for Energy Transition

The CEFC’s investment in QGIF II reinforces the growing role of infrastructure funds in driving decarbonisation outcomes. By directing capital toward assets linked to renewable energy, transport electrification, and digital energy management, institutional investors are shaping the pace of transition within hard-asset sectors.

The advisory team at Herbert Smith Freehills Kramer for the transaction included special counsel Yorick Ng, partner Fiona Smedley, and senior associate Adam Hickey.

As regulatory expectations and investor mandates increasingly integrate climate considerations, transactions of this nature highlight the intersection of legal structuring, sustainable finance, and infrastructure deployment in advancing energy and transport sector transformation.

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