SYDNEY, April 27 (Xinhua) -- Australia's largest commercial bank, the Commonwealth Bank of Australia (CBA), announced on Wednesday a "Green Home Offer" which would lower interest rates for customers with homes that meet sustainability and energy standards.
Customers would have access to interest rates at just under 2 percent, over 1 percent less than the bank's standard home loans.
CBA Executive General Manager of Home Buying Michael Baumann said the program seeks to reward Australians with sustainable homes and incentivize more to do the same when building or buying.
"We expect all residential homes to be built to these standards over the coming years as we move towards a net zero future and by introducing the new Green Home Offer, we want to encourage customers to take steps now to protect the environment and their home," said Baumann.
To be eligible for the program, customers would need to have their home approved by the Green Building Council of Australia (GBCA), the country's peak authority for sustainable buildings.
"Australians want better homes that are healthier for their families, lighter on their wallets and better for the planet," said GBCA CEO Davina Rooney in a joint statement.
Environmental economist from the University of Queensland, Andrea La Nauze, told Xinhua that improving building efficiency would likely be a key part of Australia's gradual journey to net zero emissions.
"In the short run while stock is fixed this will probably drive up the price of more efficient homes, but in the longer run we would expect to see the market respond by producing more efficient housing," said La Nauze.
She said a major challenge in creating a broader shift across Australian society to more sustainable homes and buildings would be making consumers and developers aware of the footprint of buildings.
"Economists have been really surprised by how difficult it is to get homeowners interested in energy efficiency audits and energy efficiency upgrades, even when they are free"
She noted that consumers who are looking for more sustainable, and expensive, homes are generally on higher incomes which is likely the type of customer the CBA wants to attract with the lower rates.
"The energy savings they (home buyers) can expect from a more efficient home are generated over a long-time frame, and consumers tend to be much more responsive to the upfront price of a home." ■
