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The operator of the Gold Coast Airport, Queensland Airports Limited, is set to reduce carbon emission through $100 million in "sustainability-linked" loans from Commonwealth Bank and Westpac.
The financing deal with Gold Coast Airport is the first in Australia to be directly linked to a reduction in carbon emissions.
Commonwealth Bank is funding $75 million of the sustainability-linked loan and Westpac $25 million pushing the emissions-linked portion of the funding to $100 million.
Airport operators will use the funding to redevelop the airport and double its terminal floor area over several years, with interest rates to fluctuate depending on whether the airport is able to meet its emissions targets. Underperformance will trigger an increase in pricing.
The multi-year project has been designed to improve the customer experience and address current and future capacity issues.
The Gold Coast Airport deal is part of a move by CBA to develop solutions to help customers who are looking for greener and more energy-efficient opportunities.
“The world is changing rapidly and it’s imperative that we are always looking for innovative solutions that help our clients navigate this change,” CBA group executive of institutional banking and markets Andrew Hinchliff said.
“Commonwealth Bank’s financing deal is the first in Australia to be directly linked to a reduction in carbon emissions, with the potential for a margin reduction provided the airport meets targets linked to a reduction in carbon emissions intensity.”
In May, CBA chief executive Matt Comyn announced plans for the Green Mortgage initiative, a reward scheme for energy efficient home owners.
About $500 million has been invested in the airport precinct including the foundations of the southern terminal expansion and the Rydges-branded airport hotel, which is now under construction.
The southern terminal will house the airport’s international operations, with capacity to service domestic flights using a swing gate system, based on demand.
“Environment, Social and Governance is an area QAL is increasingly focused on, and we have already delivered several sustainability projects across our airports in the past few years,” Queensland Airports chief executive Amelia Evans said.
“Some of these projects include reducing greenhouse gas emissions at Gold Coast Airport by replacing lighting with LED, upgrading air-conditioning units and replacing energy efficient drive motors within our baggage handling system.’’
By 2037 the airport precinct will contribute north of $800 million annually to the region and support an estimated 20,000 full time jobs.
