How investing in green buildings, including cheaper home loans, is a win for banks, people and our planet
Australia is facing dual crises: increasing climate change risks and soaring housing costs. Financial institutions have a crucial role to play in funding and promoting solutions to these challenges.
A recent United Nations Environment Programme report, Banking on Green Buildings, proposes ways to promote sustainable buildings in line with both economic and environmental goals. Suggested options include green bonds and green mortgages for developing and renovating buildings to be sustainable.
Banks have the power to revolutionise how we fund construction. Directing investment into green buildings means future houses can be affordable, sustainable and resilient to climate change.
Our buildings account for around 19% of total energy use and 18% of direct carbon emissions in Australia.
How does this help with housing costs?
Rising costs and a lack of affordable choices are putting immense pressure on Australia’s communities and housing sector. Soaring energy bills have driven up the cost of living, especially for low-income households.