30 January 2014 – South Australia has announced the release of its draft Building Upgrade Finance scheme for energy, water and environmental efficiency upgrades in commercial buildings.
Sustainability, Environment and Conservation Minister Ian Hunter said the BUF (elsewhere known as Environmental Upgrade Agreements) would overcome the split-incentives in leased buildings – that is, when the tenant gets the benefit but the owner pays the cost.
The BUF will tie the loan to the property, not the tenant or the owner, with loan repayments collected via a local government charge on the property.
“We also see it creating opportunities for the clean technology sector, improving the quality of our building stock, mitigating the impact of rising energy and water costs on business, and delivering a range of environmental benefits including reduced greenhouse gas emissions,” Mr Hunter said.
The scheme is part of the climate change sector agreement between the State Government and the Local Government Association of South Australia and requires an amendment to the Local Government Act 1999, the minister said.
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