A Sustainability-focused Future for Newcastle Airport With a $235m Green Loan From Commbank

Committed to being the green gateway to the Hunter, Newcastle Airport has joined forces with CommBank to fund a raft of pioneering sustainability programs via an innovative $235 million Green Sustainability-Linked Loan (GSLL). The GSLL converts existing loan funding to one linked to specific sustainability actions and outcomes. 

Newcastle Airport CEO, Dr. Peter Cock said with the support of the GSLL, Newcastle Airport is proud to be part of the Hunter Region’s transition to low carbon energy. 

“As we strive to be the green gateway to the Hunter, we are committed to supporting and demonstrating the region’s shift towards a sustainable future,” Dr. Cock said. “Our new terminal, which has achieved 5 Star Green Star standard in design, reflects our dedication to environmental responsibility and our role in this important transition.”  

“We have already achieved net zero for scope 1 and 2 emissions well ahead of our 2030 goal. It’s ambitious programs like this that are really setting the standard for how we approach sustainability.   

“Our terminal expansion build has also been Designed Assessed by the Green Building Council of Australia (GBCA) and is on track to receive a 5 Star Green Star Buildings rating – the first airport terminal in Australia to achieve this under the new rating tool.     

“To attain a 5 Star Green Star rating for our expanded terminal build is a testament to its high level of sustainability and environmental performance. It’s a great achievement for the airport and the broader Hunter region, which is adopting new technologies and diversifying its economy.  

“Attaining Level 4 Airport Carbon Accreditation (ACA) from Airports Council International is another proud achievement. We are one of only two airports in Australia with this ‘Transformation accreditation’ acknowledging our carbon management strategy and our dedicated efforts to significantly reduce emissions.   

“Out of 591 airports in the ACA Program worldwide, only 98 airports have achieved an ACA Level of four and above. It serves as a positive example, encouraging other airports to join in the collective journey towards a more sustainable future.  

“Our sustainability promise contributes to global efforts in this space, supports the Australian Government’s pledge to achieving net zero greenhouse gas emissions by 2050 and is a part of the Hunter region’s diversifying economy.  

“By mid-2025, our terminal expansion will be complete with Newcastle Airport emerging as a true global gateway, drawing both domestic and international services.  

“We believe a holistic approach to sustainability, integrating operational changes and financial strategies, will lead the way for a region in transition.”  

CommBank’s GSLL is broadly tied to Newcastle Airport’s efforts to reduce scope 3 emissions, achieving a high ACA level and minimising waste sent to landfill across the entire airport precinct, with interest rates linked to ambitious progress against these goals. 
 
“We’re delighted to continue our ongoing partnership with Newcastle Airport and play a role in helping to support the growth and sustainability of the Hunter and Newcastle region,” CommBank Vanessa Nolan-Woods, General Manager, Regional & Agribusiness Banking, said.

“Newcastle Airport is already making strong progress in the transition to net-zero and its desire to set ambitious new environmental targets as part of this new funding arrangement demonstrates a continued commitment to achieving sustainable outcomes and the development of a world-class gateway to the Hunter region,” Ms Nolan-Woods said.
 
In the past year, Newcastle Airport has made significant progress towards becoming one of the most sustainable airports in Australia, including: 

• Partnering with Australian renewable energy retailer to allow energy requirements to be met entirely through renewable sources helping to achieve net zero scope 2 emissions well ahead of the airport’s original 2030 target, (achieved in Jan 2023). 
• Building a new premium covered carpark roof with the supporting 1236 solar panels, designed to fulfill over 30 per cent of the airport’s future energy needs, (Completed in June 2023).
• Working with Tasman Environmental Markets to offset scope 1 emissions by investing in native bushland regeneration projects in NSW (in place for emissions commencing June 2023 onwards).
• Installing six electric vehicle parking bays for passenger EV use, (June 2023).
• Achieving a 5-Star Green Star ‘Designed’ Record of Achievement for its terminal expansion build (Achieved in September 2024). Newcastle Airport’s Astra Aerolab buildings are also on track for targeting that same ‘5-Star Green-Star rating or LEED (Leadership in Energy and Environmental Design) rating accreditations.  

Dr Cock said part of being the airport the region deserves is that we deliver on our commitment to sustainability and are a key enabler in this diversification for our region.  

“CommBank’s GSLL, and future sustainability initiatives we are seeking funding for such as emerging aviation technologies, working with partners to help reduce scope 3 emissions and additional solar or battery energy infrastructure, will help us get there.”