Financing Innovation Award Shortlisted Finalist
Blue Mountains City Council (BMCC): Carbon Revolving Reserve
In anticipation of the Carbon Tax, BMCC had built a reserve of money to contribute towards future liabilities for landfill gas. When the carbon tax was scrapped, it was recognised that Council had a unique opportunity, as a result of the carbon reserves, to become a leader in carbon reduction.
This started with the creation of a Carbon Abatement Action Plan (CAAP) which set out a 5 year strategic vision, highlighting organisation barriers to action, hotspot areas and project boundaries. One of the key barriers identified by staff was lack of funding for carbon reduction initiatives. The Creation of a $1.6 million dollar Carbon Revolving Reserve (CRR) was an essential step in overcoming the key barrier.
Since it’s inception the CRR helped commit $1.7 million dollars of energy efficiency and renewable energy projects, with 2019-2020 projects accounting for $1.1 million. The projects have or will deliver combined annual savings of $300,000, they have attracted ~$300,000 of grant and co-funding.
The combined ROI after deduction grant funding is 5 years. This will enable a further $1.5 million of investment over the next 5 years. The CRR has been instrumental in achieving our 20% absolute reduction target 3 years ahead of schedule.