Environmental Upgrade Agreements
It’s now easier for Victorian businesses to upgrade their buildings to be more energy efficient and sustainable, with new laws that enable businesses to use Environmental Upgrade Agreements (EUAs).
EUAs are a council-based financing mechanism to help businesses access funding for building works to improve energy efficiency, reduce waste and cut water use.
EUAs were previously only available for upgrades to buildings in the City of Melbourne, through the City of Melbourne Act 2001.
By amending the Local Government Act (1989), the Victorian Government expanded the existing scheme, giving all Victorian councils the option of offering EUAs.
Under an EUA, lenders provide finance to a building owner for environmental upgrades, with the local council then collecting the repayments through its rates system and passing them on to the lender.
Use of the council rates system means that loans are more secure, allowing lenders to offer more competitive loan terms.