Sustainable Cities Investment Program
The Sustainable Cities Investment Program extends the CEFC’s work in bringing clean energy solutions to the built environment. The Sustainable Cities Investment Program aims to invest $1 billion over 10 years in clean energy and energy efficient technology solutions in cities and the built environment.
The Sustainable Cities program leverages private sector capital to accelerate the deployment of cutting edge clean energy projects in Australia’s cities. These can include precinct-scale renewable energy plants and installations, next generation transport management systems, ‘green’ buildings and energy efficiency retrofits for social and affordable housing.
The CEFC works closely with the Department of Prime Minister and Cabinet to ensure the Sustainable Cities program complements the activities of the City Deals initiative, which develops coordinated investment plans to unlock business and industry development in cities, including Western Sydney, Launceston and Townsville.
Fifty Clean Energy Ideas for the Property Sector
The property sector is one of Australia’s biggest carbon emitters, with buildings contributing more than 20 percent of greenhouse gas emissions. During the year the CEFC worked with consultants Norman Disney & Young to produce a report identifying 50 best practice initiatives that can be used across a wide variety of new and existing properties.
The initiatives reflect the insights of major investors across the property sector, many of whom are at the forefront of Australia’s clean energy transition. The report highlighted a wide range of clean energy technologies that currently aren’t prescribed by the National Construction Code, but which are proven, readily available and can be deployed immediately.
CEFC Finance in Action: Sustainable Cities
Adelaide development chases top marks
The CEFC’s first major property investment in Adelaide will drive the development of innovative new student accommodation.
The CEFC committed $32 million to the 428-bed student accommodation project in Waymouth Street, Adelaide. Managed by Atira Student Living, the off-campus, purpose-built student apartment complex is a joint venture investment between Blue Sky Private Real Estate (BSPRE) and Goldman Sachs. The project is expected to open in February 2018.
Through the CEFC finance, the development will achieve a 25 per cent reduction in greenhouse gas emissions compared with business as usual. This will deliver a significant reduction in the building’s carbon intensity, as well as lower ongoing energy costs. Initiatives incorporated into the project include energy efficient heating, ventilation and air conditioning, energy efficient equipment, LED lighting, centralized gas water heating, water efficient taps and 25kW rooftop solar.
While liveability and sustainability are key considerations for today’s students, we also expect to create benefits through reduced operating costs.
Clean energy boost for community housing
The CEFC extended our finance to community housing provider SGCH (St George Community Housing), with a $130 million commitment for the construction of 300 new energy efficient homes under the NSW Social and Affordable Housing Fund (SAHF).
The CEFC finance will enable SGCH to build all its SAHF homes to an average 7-Star National Housing Energy Rating System (NatHERS) rating.The homes are likely to include features such as improved insulation, LED lighting, energy efficient appliances, smart meters and solar installations.
SGCH will build a mix of social and affordable housing units in south and south-western Sydney, delivering more sustainable, affordable housing for low to moderate income families.
SGCH, one of Australia’s largest community housing providers, has already drawn on $40 million in CEFC finance in an earlier transaction, to enable the construction of some 200 energy efficient dwellings.
This finance is a game changer. Our tenants will be able to manage their electricity costs using the latest clean energy solutions, while living in well-located, sustainable and affordable housing. The finished dwellings will demonstrate the long-term benefits for the people of NSW, with sustainable social, economic and environmental outcomes.