New innovative way to finance environmental building upgrades now in place

08 August 2017

SA Government:  Commercial landlords can now access an innovative new way of financing energy and environmental upgrades of their buildings, with Building Upgrade Finance regulations taking effect from today.

Building Upgrade Finance makes it easier for property owners to upgrade their existing commercial buildings to improve their environmental impact. It will stimulate investment and jobs in South Australia, while also helping reduce emissions across the state.

Improving the energy efficiency of buildings in the City of Adelaide will help work towards Adelaide becoming the world’s first carbon neutral city.

In an Australian first, it also facilitates upgrades to heritage buildings.

Background

Building Upgrade Finance is a voluntary way of financing for building owners, local councils and financiers. It is designed to tackle market barriers that can prevent commercial building upgrades going ahead. These barriers include access to the capital to fund upgrade projects, and the split incentive between landlords and tenants in leased buildings, where the building owner incurs the cost of the upgrade, but the tenant receives the benefits through reduced energy and/or water costs, and improved accommodation.

The mechanism allows for upgrades that improve energy and/or water efficiency, reduce emissions, or include renewable energy measures.

The mechanism is strongly supported by the Property Council of Australia (SA Division), with in-principle support from the Local Government Association of South Australia and councils including the City of Adelaide and Salisbury Council.

 

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Source:  South Australian Government - www.premier.sa.gov.au

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