Australia’s Clean Energy Finance Corporation Promotes Use of Timber in Large-Scale Construction with Debt Financing

Wanting to promote a mass transformation in timber construction across the property sector in Australia, the Australian government’s Clean Energy Finance Corporation (CEFC) is providing $300 million (AUD) in debt finance for eligible projects nationwide.

The new CEFC program seeks to transform large-scale building construction in Australia, with the potential to cut construction-related emissions. This comes after new CEFC research confirms that there is a critical need to transform the countries approach to construction if we are to achieve an economy-wide transition to zero emissions.

According to the Green Building Council of Australia, embodied carbon made up 16 percent of Australia’s built environment emissions in 2019 — and without intervention that percentage will balloon to 85 percent in 2050, the year by which Australia must achieve net zero emissions in line with the Paris Agreement.

Ian Learmonth, CEFC chief executive officer says that the cash will help finance the transition to zero emissions “by encouraging owners, developers, and builders to use lower carbon engineered wood products in their projects… We are excited to bring [our] expertise to sustainable construction.”

Mr. Learmonth added, “Innovations in engineered wood products have created new opportunities for mass timber construction to be used in larger projects, creating the potential for immediate and long-term environmental benefits.”

Eligible recipients will be considered on a case-by-case basis and may be in commercial offices, retail, industrial, healthcare, education, multi-residential apartments, seniors living, or student accommodation.