Investing in mass timber construction in australia: The clean energy finance corporation timber building program

Abstract

The built environment must play a significant role in achieving Australia s decarbonisation objectives. Whilst energy efficiency measures and renewable energy sources helping to address the operating emissions of Australia s built environment have gained significant traction, the embodied carbon in the materials used in construction is becoming an increasingly important component of the built environment s carbon emissions profile. Where application is appropriate, mass timber provides a lower embodied carbon alternative to conventional construction materials. The Clean Energy Finance Corporation (CEFC) Timber Building Program, launched in February 2022, offers AUD 300 million in debt financing to encourage greater use of mass timber in construction. The CEFC Timber Building Program looks to increase the use of mass timber in Australia, to achieve direct carbon savings through individual projects and drive demand for mass timber products in Australia. It also aims to enable increased exposure and capacity building for construction professionals and help to influence the broader market through providing demonstration value. The Timber Building Program highlights the unique and broad impact potential of targeted, purpose-driven financing.