NAB Environmental Upgrade Funding gives you an incentive to carry out sustainability upgrades of your commercial property, including industrial, education and retail buildings.
You can enhance energy performance and save money. Funding can be up to 100% over long durations, so in effect energy efficiency savings can be used to repay the ongoing upgrade charge.
Upgrading helps you potentially maintain or even increase your equity yields. Data increasingly supports the idea that sustainable buildings generate better financial returns. As well as that, rising energy prices are increasing tenants' interest in energy efficiency1.
The BetterBuildingFinance.com.au website provides a simple, clear overview of Environmental Upgrade Finance (EUF, also known as Environmental Upgrade Agreements or EUAs) and the benefits it can provide for building owners and tenants compared to traditional finance options. The website is a collaboration between ClimateWorks Australia and Sustainable Melbourne Fund, and includes:
- case studies of buildings that have upgraded using EUF
- example business cases for a range of real buildings across South Australia, Victoria and New South Wales
- a 'mortgage calculator'-style tool to help building owners compare EUF to traditional finance in their own building
- details of banks, councils and service providers that can help facilitate this finance.
This Funding can also overcome the 'split incentive' that can arise when you pay for an energy efficiency upgrade, but your tenants see the most benefit from the resulting energy cost savings.
The funding model is available in select council areas (City of Melbourne, City of Sydney, City of Parramatta North Sydney, City of Newcastle and Lake Macquarie Councils). Eight transactions of this type have been signed to date (as at December 2013), to a total of over $35 million.