LGFA is pleased to announce the launch of its Climate Action Loan Lending Programme for council and council-controlled organisation (CCO) members. LGFA recognises the risks inherent in climate change for both New Zealand and local councils and CCOs and wishes to support New Zealand’s shift to a low-carbon economy. LGFA also recognises it has a role to play in New Zealand’s contribution to meeting the United Nations' Sustainable Development Goals and helping its borrowers to build a stronger and more resilient society. 

To compliment the Green, Social and/or Sustainability Lending programme (GSS Loans) launched in October 2021, LGFA is widening its sustainable finance options for borrowers and offering them the opportunity to apply for Climate Action Loans (CALs). Offering CALs will align to LGFA’s aim of displaying leadership to the sector on sustainable lending and encouraging its members to make progress on sustainability issues.

CALs are target (or incentive) based lending structures designed to incentivise borrowers to act on climate change and reduce greenhouse gas emissions. A CAL rewards a borrower through a margin discount if that borrower has adopted an Emission Reduction Plan (ERP) which sets out specific Emissions Reduction Targets. Both the ERP and Emissions Reduction Targets relate to a borrower’s operational greenhouse gas emissions at council or CCO level.  CALs are targeted to all borrowers, including those who may not have eligible projects to access GSS loans.

As at December 2022, NZ$543 million of GSS Loans have been approved by LGFA, with NZ$101 million drawn across a range of green buildings, climate change adaptation and affordable housing loan categories.

If you have any questions please contact Nick Howell (Head of Sustainability) on +64 21 227 3738.