Green loans on offer for Sydney office refurbishments

Sydney office landlords will be encouraged to undertake more environmentally friendly office refits under a new “green loans” program.

The program is a joint initiative between the City of Sydney and independent government-backed consultants Low Carbon Australia Ltd (LCAL).

The program has $100 million in initial funding set aside following agreements with NAB and Eureka Funds Management.

Under the program, the building owner will sign an environmental upgrade agreement with the LCAL and the City of Sydney for an approved sustainable refit.

The funding is then paid by the city council, with the building owner paying back the cost of the refit as a levy on council rates.

The LCAL is now embarking on an education program for landlords, with the first upgrade agreement expected to be signed within months.

“Any decisions on building upgrades are really two- to three-year time frames, so we are really trying to get to as many of the building owners who are at that stage so they can see this as an option that might allow them to undertake a bigger upgrade than they had originally planned,” LCAL chief executive Meg McDonald told the Australian Financial Review.

The program is part of the City of Sydney’s own plan to cut carbon emissions by 70% by 2030.

City of Sydney chief executive Monica Barone says the city already has close ties with the owners of 60% of the city’s existing buildings through the Better Buildings Partnership, an initiative aimed at improving the sustainability performance of existing commercial and public sector buildings across Sydney's local government area.

Barone says there is already a high level of interest and commitment from commercial landlords.

Buildings are responsible for about 80% of greenhouse gas emissions in urban environments, according to City of Sydney sustainability director Chris Derksema.