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This Program Guide was developed by Better Building Finance to grow the Environmental Upgrade Finance market in Australia, to allow more businesses access this finance, unlock savings and become more sustainable.

Report extract

Environmental Upgrade Finance (EUF) is a new and growing form of finance designed to make existing buildings better. Under the Local Government Act 1989, councils across Victoria have the authority to offer EUF to owners of non-residential buildings for building upgrade activities which will reduce energy and water use, generate energy through renewables sources and reduce waste. EUF covers full project costs with repayment terms (up to 20 years) that work for all types of businesses.

EUF enables owners and occupiers of non-residential buildings to overcome financial barriers to implement building upgrade activities. These upgrades can reduce operating costs and provide positive cash flows due to extended loan terms, where the savings exceed the repayments.

EUF involves an agreement between a lender, building owner and a council, called an Environmental Upgrade Agreement (EUA). The loan is secured against the rateable land by an Environmental Upgrade Charge (EUC). The EUC is collected by councils and is payable on the same instalment dates as property rates. The EUC collection processes, including any penalty interest is subject to Section 172 of the Local Government Act and the loan is not subject to acceleration upon default. If the property is sold before the EUC is fully repaid, the EUC repayment obligation can be novated to the next owner, subject to agreement. Alternatively, the building owner can pay the EUC before selling the land.

Last updated 09 July 2020
Last updated
09 July 2020
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