Sustainable Finance Guide
As lenders and borrowers increasingly look to cut emissions and incentivise better buildings, we've released an important guide to help the market answer the question ‘to obtain sustainable finance, what is a considered a sustainable building?’
As trusted, third-party verified certifications used by hundreds of projects each year, many in the sector are already using Green Star and Homestar for new building projects and Green Star Performance and NABERSNZ for certifying existing building portfolios as part of green loan and bond mechanisms. This has in turn driven financial benefit incentivised the property sector to take action to decarbonise their portfolio, use less energy, and build better.
The guidance sets out NZGBC’s rating tools including what certification and level of performance should be expected for certain building types, both now, and in future years as the sector ramps up to improve its sustainability outcomes and contribute to Aotearoa New Zealand's climate goals.
Ongoing updates and consultation
The Sustainable Finance Guide was launched in August 2024 following an extensive period of consultation, coming into effect November 2024.
With the rapidly evolving market, the guide is reviewed annually alongside stakeholders to ensure it remains fit for purpose and meets the needs of borrowers and lenders.
We are currently consulting on the next guide due to be released in the second half of 2025
- March webinar: Introduced proposed additions to guide
- End of March: Online survey open for initial feedback. Read the proposed updates here
- End of June: NZGBC sustainable finance guide v2.0 DRAFT issued
- Friday 25 July: Consultation closes after one month, guide finalised
- Second half of 2025: NZGBC sustainable finance guide v2.0 published
Sustainable Finance Guide v2.0 Draft
Overall the feedback so far has been supportive, and we’ve incorporated some useful suggestions into this latest draft.
A quick summary of changes so far:
- Further clarifications in the guide. We are also working to set up a ‘Frequently Asked Questions’ section on our website.
- Buildings upgrades pathway – Our technical team has proposed a pathway for a 30% reduction in carbon emissions for energy for a NABERSNZ base building and whole building ratings – these are expressed as tables in the guide.
- Green Star Communities – Now included to sets out the timeline of a typical Green Star Communities project with proposed thresholds.
- Homestar v5 as a Climate Bonds Standard proxy – With the latest version of Homestar being recognised by the Climate Bonds initiative, this has now been included in the guide.
We appreciate your time in completing the survey with your feedback. The consultation will run until 5pm Friday 25th July. If you have any questions, please contact Bobby Shen.
