By CASEY NEILL
BUSINESSES can tap into a new way to borrow money for green initiatives.
Under new State Government legislation, lenders can provide finance to a building owner under an Environmental Upgrade Agreement (EUA) for upgrades to cut energy and water use and reduce waste.
The local council then collects the repayments through its rates system and passes them onto the lender.
Energy and Resources Minister Lily D’Ambrosio said building owners could pay back the loan while benefiting from the lower costs of a more resource-efficient building.
If ownership or tenancy rights change, the new owners take up the loan and pay it through their rates.
Ms D’Ambrosio said that without the system, businesses had a disincentive to invest in efficiency because they might move premises before paying off the loan.
She said loans would also be more secure, encouraging lenders to offer more attractive loan terms.
“Typically, many businesses face difficulty accessing finances for environmental upgrades,” she said.
“This scheme will make it easier for businesses to obtain finance to improve their buildings, reduce waste and cut water use.”
The State Government also announced it would hold an Energy Efficiency and Productivity Summit at the Melbourne Convention Centre on 25 August.
