The University of Tasmania issued a 10-year and 20-year dual tranche AUD$350m green bond, the largest green bond deal completed by an Australian university at the time. The strong investor support for the University’s first green bond issue is seen as a significant sign of confidence in the University and our sustainability agenda. The success of the deal was also significant given the volatility in the market in the wake of the Russian invasion of Ukraine.
Charles Davis, the Commonwealth Bank’s managing director of sustainable finance, said “We have not yet seen a green bond in the Australian market with an eligibility criteria focused on embodied carbon rather than operational performance,” he said.
Our Green Bond Framework (Flippingbook) was developed in line with the International Capital Market Association’s Green Bond Principles 2021 and more broadly green bonds are issued to finance eligible programmes that deliver positive environmental outcomes through a partnership with like-minded investors.
The proceeds from the Green Bonds will be utilised by achieving a minimum 20% reduction in upfront carbon emissions through the adaptive reuse of existing buildings (i.e., avoiding demolition and construction) where appropriate, and the use of low embodied carbon construction practices in major refurbishments and new construction as part of our campus transformation.
Key websites and documents are linked below:
- Green Bond Framework (Flippingbook)
- Green Bond Framework Assurance Statement (PDF 593.7 KB)
- Green Bond Reporting Assurance Statement (PDF 450.2 KB)
- Green Bond Use of Proceeds Acquittal (PDF 68.5 KB)
Upfront carbon reduction impact
As Tasmania has one of the lowest carbon intensive electricity grids in the world, the University of Tasmania has determined the most impactful pathway for our contribution to decarbonisation is to reduce the upfront embodied carbon within our building program. Focus on embodied carbon will also play a role in driving transformative change of the construction industry.
We are achieving this through the use of low embodied carbon construction materials in new construction and adaptive reuse of existing buildings, where appropriate, as part of our campus transformation.
We have a minimum 20% reduction target in our Green Bond Framework and have achieved greater than 30% reduction in new construction and over 60% in refurbishment and reuse projects.
Upfront carbon emissions reduction under Green Bond Framework
- Total impact includes eligible Northern Transformation campus buildings, which are co-funded by the Australian Federal Government, Tasmanian State Government and the University of Tasmania.
- The average annual emissions from a car is calculated to be 1.63 tonnes of tCOre. This is calculated from the National Transport Commission of CO2 emissions for a new passenger cars and light SUVs vehicle sold in Australia in 2022, and the average kilometres travelled by a passenger vehicle for the 12 months ending 30 June 2020 by the Australian Bureau of Statistics.
- Infographic (PDF 1.5 MB).