In September 2023, the Commonwealth Bank of Australia (CBA) acted as sole coordinator and financier for an AUD 51 million Green Loan to advance a Green Cement Transformation Project (GCTP) from Hallett Group, the largest supplier of building and construction materials in South Australia.
The project uses existing and proven technology to repurpose industrial waste by manufacturing it into low-carbon green cement products that can replace more than 50% of traditional high-CO2 emitting clinker-based cement and support the decarbonisation of Australia’s cement industry.
DNV provided an independent second-party opinion confirming the alignment of the AUD 51 million green loan with the Asia-Pacific Loan Market Association (APLMA)’s Green Loan Principles. The remainder of the project is to be funded by Hallett with the support of an AUD 20 million Modern Manufacturing Grant from the Australian government.
The project uses established renewable energy sources and has created job opportunities across the regional city of Port Augusta along with new infrastructure in Port of Adelaide. Hallett expects the project to displace CO2 emissions of approximately 1 million tonnes annually in years to come.
Read more on Commonwealth Bank’s net-zero targets here.
This case study was originally published in the Net-Zero Banking Alliance 2024 Progress Report (October 2024).
Disclaimer: NZBA shares case studies to promote member banks’ awareness of new approaches, tools, products, services, and transactions related to financing the transition to net zero. Featuring a case study naming a particular bank does not represent an endorsement of all actions from that bank.