The Green Building Council of Australia (GBCA) has formed a new partnership which allows Australian property owners to leverage Green Star – Performance data on greenhouse gas emissions to attract new sources of funds from large-scale institutional investors seeking low-carbon assets.
GBCA chief executive, Romilly Madew, said Green bond issuance tripled globally last year to $36.6 billion – and that figure is expected to double by the end of 2015.
“It’s clear that the market is looking for guidance to determine energy-efficient and low-carbon assets that will be sustainable investments over the long term,” Madew said.
Under the partnership, Green Star – Performance greenhouse gas emissions data will be recognised by an international investor-grade standard. Known as the Climate Bonds Initiative, it will accelerate investment in buildings that are better for the environment, communities and investors.
To qualify for Climate Bonds certification, proceeds must be dedicated to buildings that are able to demonstrate low-carbon emissions in operation for the life of the bond through an annual monitoring and verification process.
Buildings must meet the Climate Bonds low-carbon trajectory in terms of carbon intensity, and the greenhouse gasemissions data underlying a Green Star – Performance rating for verification.
“A Green Star – Performance rating, which requires annual reporting on greenhouse gas emissions and water consumption, provides a clear avenue for portfolio owners wanting to fund upgrades or refinance existing low carbon buildings through climate bonds,” Madew said.
Climate Bonds Initiative CEO, Sean Kidney, said the partnership will make it easier for building portfolio owners and lenders to access the humming green bonds market.
Climate Bonds certification is granted by the Climate Bond Standards Board, representing $34 trillion of investors around the world.
Founding chair of the World Green Building Council and the Climate Bond Initiative’s technical working group for Low Carbon Property lead expert Ché Wall, said providing objective, robust and verifiable measures for investors allows them to direct their efforts towards climate change mitigation. “This is essential and everyone benefits,” he added.
“Globally, buildings account for around 30 per cent of all energy-related carbon emissions. This collaboration enables an essential link between climate bonds and Green Star – Performance, and helps building owners raise the capital they need to embark on upgrades," he said.
The Climate Bonds Initiative is the only organisation in the world working to mobilise the $100 trillion bond market for climate change solutions.
Meanwhile, Frontier Energy announced today that it is creating a toolkit that is set to make community energy projects easier to develop, supported by $296,000 funding from the Australian Renewable Energy Agency (ARENA).
ARENA CEO Ivor Frischknecht said the $493,000 project would help break down some of the barriers facing new community energy projects by increasing project developers’ understanding of how to secure finance.
“While the community renewable energy sector in Australia is growing, there remains a large gap in information on financing,” Frischknecht said.
“The new financial toolkit will provide easily accessible information on financier requirements, financial models, checklists and case studies through a central website, along with a list of key contacts.
“Spending less money on external advice, particularly in the early stages of development, will make projects cheaper overall.
“Ultimately, the resources aim to reduce the duplication of efforts, lowering project development costs and making community renewables projects more viable.”
In the coming months, Frontier Energy will consult with a range of key stakeholders in the development of the toolkit including commonwealth and state governments and key community energy groups.
The toolkit is scheduled for release in early 2016.