The Climate Bonds Standard for Low Carbon Green Buildings has been launched and Australian buildings are in an unmatched position to lead the world in attracting low-carbon investment.  The NSW Office of Environment and Heritage is pleased to announce that a NABERS Energy rating report is immediately suitable as acceptable data for reporting under the Climate Bonds Standard.

The Climate Bonds Standard is a Fair Trade-like labelling scheme for bonds, designed to make it easier for investors to work out what sorts of investments genuinely contribute to addressing climate change.

This means that Australian commercial property owners now have the opportunity to leverage the low carbon credentials of their buildings to attract new and competitive sources of funds from large scale institutional investors seeking low carbon investment options.

To qualify for a Climate Bonds certification for Low Carbon Green Buildings, proceeds must be dedicated to buildings that are able to demonstrate very low carbon emissions in operation for the life of the bond. Specifically, these buildings must be in the best 15% of buildings in a local market when it comes to carbon intensity (kgCO2/m2). This carbon intensity is published on each NABERS Energy rating report as a supplementary indicator to the NABERS Energy rating.

The demand for environmentally responsible investment has been growing in both Australia and overseas and fuelled the rapid growth the green bonds market, which trebled in size in 2014. The first Climate Bond issued by NAB (AUD $300m) in 2014 doubled in size due to strong investor demand. More broadly, at the UN Climate Summit in September 2014 investors representing USD$43 trillion of assets under management made public commitments to climate related investment.

More detail on the new Climate Bonds Standard for Low Carbon Green Buildings is available here.