$300m Program to Encourage Mass Timber Building

On behalf of the Australian Government, Clean Energy Finance Corporation has unveiled a $300 million program to encourage mass timber building across the building sector.

Property developers and commercial landlords, who use mass timber in the construction of commercial, public or multi-residential buildings, may be able to access finance from $20 million to $75 million. This is decided on a case-by-case basis, depending on the project.

The eligibility guidelines are as follows:

• Project to use low carbon engineered wood products in large-scale construction
• Have secured appropriate materials source, accreditation and embodied carbon outcomes
• Require $20 million to $75 million in CEFC debt finance
• Be commercially sound and meet investment requirements of the CEFC
• Comply with the CEFC Investment Policies, Guidelines and Risk Approach.

Timber helps to reduce the amount of embodied carbon, which is detrimental to the environment and a big problem in the construction industry’s eco-footprint.

CEO of Master Builders Australia Denita Warn welcomed the announcement, saying that the new program would help bring down the cost of construction, develop local capacity in low-carbon timber product manufacturing and promote sustainable building.