Experience demonstrates that energy efficiency retrofits are one of the most cost effective opportunities to deliver greenhouse gas reductions. However, barriers often restrict such retrofits from occurring, including access to finance and split incentives. Environmental upgrade agreements (EUAs) have emerged as a key mechanism to overcome these barriers. EUAs are currently available in the City of Melbourne and a number of Councils in New South Wales. To make this type of finance available within Victoria beyond the City of Melbourne, a minor amendment to the Local Government Act is required.
In 2013, EAGA collaborated with the Western Alliance for Greenhouse Action to complete a research study that quantified the potential direct economic benefits that could be unlocked by EUA finance within each municipality in Victoria. The report estimates Victoria’s regions could benefit from an additional $4.5B in capital investment and over 18,000 jobs if the finance is enabled.
In 2014, this analysis was taken a step further to estimate the ongoing financial savings and potential emission reductions available to Victorian businesses. This ‘addendum’ report also makes a number of recommendations to the Local Government sector on how scale can be captured in administering an EUA scheme.
(NOTE: the full slide compendium featuring analysis for all Alliances/Councils with supporting calculations are available to Local Government Officers. Please contact our Executive Officer for a copy)
EAGA will seek to assists the region’s businesses capture energy efficiency benefits by working collaboratively with the State Government to support the establishment of a consistent administration model and assist Councils to access the services of the program administrator.