A commitment to incentivise councils and council-controlled organisations to act on climate change and reduce greenhouse gas (GHG) emissions.
Climate Action Loans (CALs) are target (or incentive) based lending structures designed to incentivise councils and council-controlled organisations (CCOS) to act on climate change and reduce greenhouse gas (GHG) emissions.
Offering CALs aligns to LGFA’s aim of displaying leadership to the sector on sustainable lending and encouraging member councils and CCOs to make progress on sustainability issues.
A CAL rewards a borrower through a margin discount if that borrower has adopted an Emission Reduction Plan (ERP) and the ERP sets out specific Emissions Reduction Targets.
CALs are documented as debt securities under LGFA's Multi-issuer Deed and classified as 'CALs' in LGFA’s Climate Action Loans Programme – Criteria.
Both the ERP and Emissions Reduction Targets relate to a borrower’s operational greenhouse gas emissions at member council or CCO level. CALs are targeted to all borrowers, including those who may not have eligible projects to access Green, Social and Sustainable (GSS) loans1.
The LGFA CAL Criteria provides a detailed background to LGFA borrowers on how to access LGFA Climate Action loan funding.
LGFA are happy to assist in answering any questions on the CAL criteria or process for applying for a CAL.
Nick Howell – Head of Sustainability
Tel: + 64 21 227 3738
Email: nick.howell@lgfa.co.nz