NRFC Net Zero Fund

NRFC Net Zero Fund

Funds Australian industrial facilities and manufacturers with concessional finance for net-zero transitions and low-emissions technology growth.

The NRFC Net Zero Fund is a AUD 5 billion sub-fund of the National Reconstruction Fund Corporation (NRFC), representing the largest of NRFC's three designated sub-funds. It provides concessional finance — debt at below-market rates — to two distinct applicant categories: large industrial facilities transitioning existing operations to net-zero carbon output, and manufacturers of low-emissions technologies in Australia. The fund is established under the NRFC Act 2023 and operates alongside the Economic Resilience Program (AUD 1 billion) and the Forestry Growth Fund (AUD 150 million) within NRFC's total AUD 15 billion mandate. NRFC explicitly does not provide grants.

Eligible sectors span climate and clean energy, advanced manufacturing, materials processing, and related industrial activities aligned with Australia's decarbonisation agenda. As with all NRFC products, applicants must be solely or mainly Australian-based, demonstrate a risk-return profile consistent with the Investment Mandate, satisfy at least one of the seven legislated priority areas, and not engage in prohibited activities (coal or natural gas extraction, gas pipeline infrastructure, or native forest logging). The fund's benchmark return is the 5-year Australian Government bond rate plus 2–3% at the portfolio level, though individual concessional transactions may be priced below this benchmark to reflect the public policy subsidy element. Loan sizes are not publicly capped; NRFC general fund precedent suggests deal sizes from AUD 10 million to AUD 200 million or above.

Applicants submit proposals via the NRFC online form at nrf.gov.au/contact-us/your-proposal. Due-diligence assessment covers business model scalability, IP, total addressable market, management, governance, and credit quality. The fund is designed to crowd-in private co-investment rather than replace it, so a credible capital structure with identified private co-investors strengthens an application.