The South Australian government has launched the Building Upgrade Finance, a program that is a part of its design to turn Adelaide into the first carbon neutral city in the world. The project is also expected to generate jobs and other investments in South Australia, all this while also contributing to reducing emissions in the state.
The Building Upgrade Finance will initiate upgrades to heritage buildings as well.
What is Building Upgrade Finance?
The Local Government (Building Upgrade Agreements) Amendment Bill 2015 was initially presented to the Legislative Council on February 11, 2015. The bill was passed by the South Australian Parliament on December 10, 2015. The website of the South Australian government published a press release stating, “The State Government has developed the Building Upgrade Agreement template in consultation with the local government, property and finance sectors to assist the parties to use the mechanism. The Minister has designated clauses 12-14 of the Building Upgrade Agreement template to be mandatory for all building upgrade agreements.”
The Building Upgrade Finance, which was formerly pertained to as Environmental Upgrade Finance, is a voluntary method of funding for establishment owners, financiers, and local councils. It is created to address market hurdles that avert commercial establishment upgrades to be done and implemented. Some of the most common challenges that property owners face in terms of upgrading their buildings include access to the capital to finance the upgrade programs and the division of incentive between the property owners and tenants. The owner of the establishment usually covers the cost of the upgrade, on the other hand, the tenant earns the benefits by way of reduced energy and water costs and upgraded accommodation.
The method would enable necessary improvements for water and energy efficiency, lessen emissions, and may also add renewable energy standards. The Building Upgrade Finance is backed up by the Property Council of Australia in South Australia, Local Government Association of South Australia, and the City of Adelaide and Salisbury Council.
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