The Clean Energy Finance Corporation (CEFC), Australia’s official green bank, has announced a $100 million investment into an innovative low emission build-to-rent housing program powered by renewables and managed by AXA IM Alts.
The program aims to integrate clean energy technologies into affordable housing developments across Australia’s largest cities.
The strategy targets the creation of up to 3000 energy-efficient apartments, with at least 50 per cent offered at reduced rents to means-tested tenants in key worker hubs.
The initiative focuses on delivering sustainable, fully electric homes designed to be powered by renewable energy while reducing embodied carbon, aligning with the International Energy Agency’s zero-carbon buildings approach.
Michael Di Russo, CEFC’s Head of Property, described the investment as a replicable model for affordable housing that prioritises sustainability.
“Bringing the benefits of sustainability to all sectors of the residential market is an important part of broader decarbonisation of Australia’s building sector and reducing our national emissions,” he said.
The first project under the strategy, a 397-unit development in Sydney’s Westmead, is set to be completed in late 2025.
Located near a major health and education precinct, it will provide housing for about 1000 people, with half the units reserved for healthcare, teaching, and emergency workers.
The development will also aim for a minimum five-star Green Star Building certification and a 7.5-star Nationwide House Energy Rating Scheme energy efficiency rating.
According to CEFC, its broader efforts to decarbonise Australia’s residential sector include more than $1.2 billion in lifetime investments.
Residential buildings account for around 10 per cent of Australia’s total carbon emissions and over 24 per cent of electricity use.
Improving energy efficiency, especially in affordable housing, can significantly reduce household energy costs and contribute to Australia’s net-zero targets.
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