Holdfast Training Services Trial Blog

3 min read. I came across this article and thought it may spark some interest…

The initial stage of Canberra’s light rail network today became the first Australian transport public-private partnership to execute a green loan.

Canberra Metro has partnered with the ACT Government to deliver award-winning, frequent, efficient and sustainable light rail services along the stage one alignment from Gungahlin to Civic.

Canberra Metro is delighted to announce that it refinanced the $280 million debt facility with a Green Loan with Climate Bond Initiative certification under the Low Carbon Transport Criteria.

This is a significant achievement for not only the project, but for the ACT Government, Canberra Metro and its owners (John Holland, Pacific Partnerships (a member of the CIMIC Group), Aberdeen Standard Investments and Mitsubishi Corporation). It recognises the significance of the first stage of light rail in its ongoing contribution to Canberra’s sustainability.

The project incorporated sustainability principles during design and construction and is now running on 100% renewable electricity and utilising environmentally friendly measures across its operation. The green loan has been issued in accordance with the Asia Pacific Loan Market Association’s green loan principles.

Categories that Canberra Metro qualified for the green loan under include renewable energy, energy efficiency, pollution prevention and control, clean transportation, sustainable water and wastewater management and environmentally sustainable management of living natural resources and land use.
In obtaining the Green Loan, Canberra Metro was assisted by our Financial Advisor and Green Structuring Advisor MUFG, our Green Loan Co-Ordinators, ANZ and CBA and our Mandated Lead Arranger banks ANZ, CBA, ING, Mizuho, NAB and SMBC.

A green loan is any type of loan instrument made available to eligible ‘green projects’. A green project may include renewable energy, energy efficiency, climate change adaptation and green buildings that meet regional, national or internationally recognised standards or certifications.

In the UK we are already familiar with loans or grants toward improved home insultation or installation of solar power. Green loans are also issued in Australia for private and commercial residential developments to boost construction of energy-efficient homes and help reduce household emissions. So whilst BREEAM sets the guidelines for assessing sustainable buildings, some banks have now started to create their own criteria. The goals of these initiatives are to build climate resilience within the banking system, as well as to raise authorised institutions’ awareness of climate risks and broader sustainability issues. In my opinion this could further drive the sustainability requirement from a client which in turn will be felt by the engineer. An interesting prospect for the future.