ELIGIBLE COMMERCIAL
BUILDINGS
AUSTRALIAN STATESNew SouthWales

Low Carbon Buildings Criteria
under the Climate Bonds Standard

What are the Low Carbon
Buildings Criteria?
They are the requirements(or Criteria) that buildings(or a portfolio of buildings)
must satisfy to be eligible for nominated useof proceeds in a Certified Climate Bond.
Any bond being Certified must also meet thereporting and transparency requirements ofthe overarching Climate Bonds Standard.

This brochure outlines the Buildings
Criteria for residential buildings
in Australia. For full details on themethodology and requirements, see thedetailed Criteria document.
When is a residential building in Australia
eligible for Certification?

VictoriaTasmania• It has or will undergo an upgrade or

to ensure that the dwelling is positioned as
best in market. Within the context of RMBS
transactions Maximum Weighted AverageLife can be substituted for Maximum Tenor.

How are hurdle rates expressed?

How to demonstrate a building meets therelevant emissions hurdle rate:

retrofit which reduces its emissions
intensity by 30-50% (depending on thetenor of the bond)

Hurdle rates represent rapid decarbonisation
trajectories aligned with the goals of theParis Agreement to limit global warming to
no more than 2 degrees above pre-industrial
levels, and ideally no more than 1.5 degrees.
Local building codes have been reviewed
to determine which codes are in linewith these trajectories, and therefore
buildings approved under those codes can
automatically be deemed compliant andeligible for certification.

trajectory (a.k.a. emissions hurdle rate)

Maximium tenor limits have, therefore, been
set on these bonds based on when that when
the relevant building code was introduced
and for how long that code will remain able
to deliver the necessary energy efficiency

New South Wales Proxy

Figure 1. All houses and apartments

It is eligible for certification if:• It meets the net-zero carbon emissions

Residential buildings are eligible
for certification if they meet theapproved proxy
Figure 1 shows the proxy requirements
for residential buildings in New South
Wales. Any building is eligible if it meetsthe proxy requirements for the mid-pointof their bond.

See boxes below for residnetial buildings inNew South Wales, Victoria and Tasmania.
Residential buildings outside of theselocations, are also eligible for certification if
they are consistent with the requirementsof an appropriate global proxy. See herefor further information on appropriateproxies.
Want more information?
Please contact
matteo.bigoni@climatebonds.net

AfterJune
2004

AfterJuly
2005

Houses in the Sydney
Local Area

Other Houses

BASIX
Energy40Apartments

Note: For all states if the approval date is unknown it can be estimated as being 18 months
prior to completion.

Low Carbon Building Criteria: Australian States1Victoria Proxy

Figure 2. All houses and apartments

Residential buildings are eligible forcertification if they meet the approved
proxy.
Figure 2 shows the proxy requirements
for residential buildings in New South
Wales. Any building is eligible if it meetsthe proxy requirements for the mid-pointof their bond.

AfterMay2011&6 StarNatHERS

Note: For all states if the approval date is unknown it can be estimated as being 18 months
prior to completion.

Tasmania Proxy

Figure 3. All houses and apartments

Residential buildings are eligible forcertification if they meet the approved
proxy.
Figure 3 shows the proxy requirements forresidential buildings in Tasmania.
Any building is eligible if it meets theproxy requirements for the mid-point of
their bond.

AfterMay2013&NCCBCA2013

Note: For all states if the approval date is unknown it can be estimated as being 18 months
prior to completion.

Climate Bonds notes that whilst theresidential proxies above have been
determined to be the best currently available
in the market, they have some limitations.
NatHERS only measures the thermal
efficiency of the building envelope and does
not assess the energy efficiency of lighting,heating and cooling plant, etc. These elements
are however addressed with the NCC BCA.

Therefore NatHERS is used only when it has
been delivered together with complimentary
requirements of the NCC BCA.

limitations in the methods of assessment
and also limitations in compliance assurance
through the construction process.

Both BASIX and NatHERs assess
design potential and do not predict
operational energy consumption. Thereis acknowledgement that there is often
a performance gap between the rating
and actual performance caused by both

Climate bonds will review the proxies forresidential in Australia on a bi-annual basis
to ensure that any proxies remain the best
available in the market.

Disclaimer: The information contained in this communication does not constitute investment advice in any form and the Climate Bonds Initiative is not an investment adviser. Any reference to anancial organisation or investment product is for information purposes only. Links to external websites are for information purposes only. The Climate Bonds Initiative accepts no responsibility forcontent on external websites. The Climate Bonds Initiative is not endorsing, recommending or advising on the merits or otherwise of any investment or investment product and no information within
this communication should be taken as such, nor should any information in this communication be relied upon in making any investment decision. A decision to invest in anything is solely yours. The
Climate Bonds Initiative accepts no liability of any kind, for any investment an individual or organisation makes, nor for any investment made by third parties on behalf of an individual or organisation,
based in whole or in part on any information contained within this, or any other Climate Bonds Initiative public communication. © Climate Bonds Initiative 2018

Low Carbon Building Criteria: Australian States2