Expansion of the Environmental Upgrade Agreement Market

Summary

Need

Environmental Upgrade Agreements (EUAs) are a council-based financing mechanism that help businesses access funding for building works to improve energy efficiency, reduce waste and cut water use. In 2015, local government legislative changes allowed EUAs to be offered across Victoria. However, councils generally lacked the knowledge and experience to offer them to their communities.

Project innovation

This project overcame previous barriers to the expansion of renewable energies to commercial buildings by enabling an innovative funding structure through local governments. Using council rate structures, building owners and tenants are both able to be the financial beneficiaries of the installation of renewable energy. These funding structures enabled the loans for the installation of rooftop solar to be repaid through council rates.

The Sustainable Australia Fund (previously known as the Sustainable Melbourne Fund) began within the City of Melbourne in developing and supporting such funding structures. Following the introduction of legislation that opened up this program to other councils, the fund worked in partnership with councils across Victoria to establish their own funding structures, including creating procedures and review mechanisms. This was achieved under the Better Building Finance brand to differentiate from Sustainable Australia Fund, which works with businesses.