We want to create the most effective and efficient Building Upgrade Finance mechanism that meets the interests of local councils, property owners, financiers and tenants.
What is being decided?
The South Australian Government is seeking feedback from the local government, property and finance sectors, tenants of commercial buildings and other interested stakeholders on the remaining elements of the legislative framework that is being finalised before the Building Upgrade Finance mechanism becomes operational inContinue reading
About
This consultation has closed
Thank you for your interest in the Building Upgrade Finance mechanism.
We want to create the most effective and efficient Building Upgrade Finance mechanism that meets the interests of local councils, property owners, financiers and tenants.
What is being decided?
The South Australian Government is seeking feedback from the local government, property and finance sectors, tenants of commercial buildings and other interested stakeholders on the remaining elements of the legislative framework that is being finalised before the Building Upgrade Finance mechanism becomes operational in South Australia. The mechanism is designed to help unlock investment in building retrofits and realise the associated economic and environmental benefits.
The mechanism will allow building owners to access loans to improve the energy, water or environmental performance of existing commercial buildings. In an Australian first, heritage works to, or within heritage buildings will be eligible to access the mechanism.
The South Australian Division of the Property Council of Australia has been a strong advocate for the introduction of the mechanism in South Australia. The mechanism also has in-principle support from the Local Government Association of South Australia and the Adelaide City Council.
Further information on the previous consultation process and feedback can be found here.
Who is encouraged to provide feedback?
As part of this final stage, feedback is sought in particular from the local government, property and finance sectors and tenants of commercial buildings. Other interested stakeholders are also encouraged to provide feedback.
This includes feedback on the content and provisions of, and requirements in, the following:
For more information about the draft regulations, agreement template and cost-savings methodology, see the Explanatory Paper(PDF 445KB) and view all the consultation documents.
How can your input influence the decision?
We want to create the most effective and efficient Building Upgrade Finance mechanism that meets the interests of local councils, property owners, financiers and tenants. Feedback will help the Government of South Australia to finalise the above-mentioned elements necessary for the mechanism to become operational.
Watch Sandy Pitcher, Chief Executive of the Department of Environment, Water and Natural Resources, talk about Building Upgrade Finance.
How can you get involved?
Written submissions marked “Building Upgrade Finance” can be emailed to climatechange@sa.gov.auor sent via mail to:
Building Upgrade Finance, Department of Environment, Water and Natural Resources, Water and Climate Change Branch, GPO Box 1047, Adelaide SA 5001
All comments submitted are considered to be public documents and may be available for public viewing, unless otherwise requested. You can also get involved in the online discussion.
Want to know more?
You can find out more about Building Upgrade Finance via:
For more information about the development of the enabling legislation, prior consultation processes and feedback, please click here.
The Building Upgrade Finance mechanism is designed to tackle market barriers that often impede commercial building upgrades from 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 utility bills and improved accommodation.
The Building Upgrade Finance mechanism thereby helps to unlock retrofitting activity and realise the associated environmental and economic benefits. Building Upgrade Finance is one of the initiatives outlined in South Australia’s Climate Change Strategy 2015-2050 – Towards a low carbon economy and supports the Carbon Neutral Adelaide initiative.
For more information about key features of the Building Upgrade Finance mechanism refer to the fact sheet (PDF 445KB).
Watch videos explaining Building Upgrade Finance and the benefits for South Australia here:
Sandy Pitcher - Department of Environment, Water and Natural Resources
Thank you for your interest in the Building Upgrade Finance mechanism.
The enablinglegislation for the mechanism and the supporting regulations came into operation on 1 August 2017.
The ‘no worse off’ methodology (PDF 1.9MB) for estimating tenant cost savings was approved by the Minister for Climate Change, the Hon. Ian Hunter by notice in the Gazette (PDF) on 8 August 2017.
The State Government has developed the Building Upgrade Agreement (BUA) template in consultation with the local government, property and finance sectors. The Minister has designated clauses 12-14 of the BUA template to be mandatory.
draft Local Government (Building Upgrade Agreements) Regulations 2016
