Environmental Upgrade Agreements (EUA)

EUA’s are a new financing model for building owners to upgrade their buildings for energy savings and green technologies. The idea being that finance is provided to pay for these upgrades and that savings generated for the upgrade will pay the finance.

Mining for Green

The finance for these projects will be levied by the council and part of the building rates and in turn billed to tenants as part of their outgoings.

The arbitrage opportunity exists due to the finance being applied by the council to the building is off-balance sheet and paid for by tenants. From the building owners perspective the finance and associated upgrades improves the net value of the building at nil net cost to tenants.

Risk or Cost? Choose One

As the cost of your project is subsidized by energy savings and paid for by tenants it is technically a win/win situation. Yet like most things it’s not that simple. Tenants are scared of entering into an agreement where savings may no be realized and guarantees don’t offer the comfort that you would expect. Maybe tenants fear legal loopholes that may leave them bearing costs despite guarantees.

Personally I believe it is an issue of trust. One where the building owner probably needs to pickup the cost of EUA payment and share savings only with tenants that come onboard. This provides proactive tenants with savings far more than any EUA charge. For the building owner this is not the most efficiency money for nothing approach, but do we ever get anything for nothing?

So, if your keen about going green and are comfortable with a little volatility in your leasing yield then EUA’s are probably right for you. Yet the question must be asked, of the 1200 Buildings covered by the legislation in Melbourne how many will look to take advantage of this?


1200 Buildings Program


Jeremy Clarkson

Up to the waist in Brown’s slurry on my new farm

The downside of challenging the incumbent farming practices. A 4.5 Billion pound legal mess.

Going green across the entire economy will probably result in similar cases in other industries.

Its a process that we will all have to endure to achieve a green economy.

Just watched a fascinating TED talk by Julian Treasure on the effect of acoustics on human physiology.

A key point that resonated with me was that open plan offices can lead to a 66% reduction in productivity due to noise pollution.

With many green building certification schemes pushing open plan spaces as a means of increasing availability of natural light to office workers. Are we providing solutions which are counter productive to our clients?

Greenstar even encourages the introduction of whitenoise to drown out pervasive noise pollution.

Makes me wonder about the many claims that green buildings increase the productivity of workers. This is clearly a generalisation and one that could be harmful to clients if green principles are applied haphazardly.

It could be that a little green knowledge can be a very dangerous thing.

I just crunched a few numbers using the WHO data on particulate emissions and the daily mortality rate of Sydney to work out roughly how many people will be killed by the dust storms.

The storms will lead to a 75% increase in daily mortality thus killing an additional 44 people today.

Having a few internet problems today, so some links may not work.

  1. Google News has stuffed up a lot of links which just go to the home page rather than the new article.
  2. The INFRASTRUCTURIST seems to be offline.

Hope these guys are back online soon. Love thier work.

I’m working through Greenstar Interiors Version 1.1 today and I have found one interesting item.

When undertaking a tenancy fiout you are not allowed to take soil off the site and bring it back.

Stockpiling of soil for re-use. as fill on-site or off-site cannot be used in the
calculation of waste re~used or recycled.

“Stockpiling of soil for re-use. as fill on-site or off-site cannot be used in the calculation of waste re~used or recycled.” Greenstar Interiros V1.1

That’s one impressive tenancy fitout that requires soil removal.

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