Carbon financing and tax incentive model for decarbonising investment properties

About This Project 

With the growing emphasis on environmental crises and economic impact due to excessive energy consumption, the transition to zero-carbon buildings becomes paramount. The building sector is a major contributor to greenhouse gas (GHG) emissions, and hence, the environmental crisis. Buildings account for 38% of the total GHG emissions globally, 73% of that related to operational energy, and 27% of that related to embodied carbon during the construction process. Despite current finance schemes and incentives on different categories of new and existing building constructions in Australia targeting net zero by 2050, there has been a lack of attention given to investment properties such as rental properties. In many instances, they do not meet decarbonisation efforts as they often select financial benefits with low-cost options over environmental impact. This research aims to develop a carbon financing and tax incentive model to promote and optimise decarbonising of investment properties. This initiative addresses not only the environmental necessities but also the economic feasibility of decarbonising strategies. Various green building rating tools are being introduced to reduce carbon emissions in buildings. Presently, their implementation in investment properties is often deterred by significant initial premium costs and a lack of financial and tax incentives for owners to offset them. This research endeavours to bridge that gap, offering solutions that are both environmentally robust and economically viable.

This research aligns with UniSA research priorities identified by the Sustainable Infrastructure and Resource Management research concentration, which is to sustainably manage natural and built environments and construct efficient net-zero buildings. The proposed strategic direction of this research builds upon UniSA STEM’s effort to contribute to research on net-zero buildings. As part of carbon and climate change, Green Building Council Australia published the climate-positive roadmap for the built environment, containing decarbonisation targets for new and existing buildings. The roadmap clearly outlines the need to meet the Green Star rating by all buildings by 2030 and zero carbon emissions by 2050. In response, the South Australian government has set targets of 50% emissions reduction by 2030. The proposed research findings will inform the policymakers in promoting financing options for investors and developers to promote carbon reduction. The proposed carbon financing and tax incentive model can be used by various stakeholders, including property investors and managers, policymakers, financial institutions, and sustainability consulting organisations. This model allows consultants and property investors to compare various carbon emission reduction strategies from a lifecycle cost perspective and select the cost-optimal solution to achieve emission reduction while achieving tax benefits.

What you’ll do 

The main outcome of this research is a carbon financing and tax incentive model that aids decision-making for different stakeholder groups, such as investment property owners, property developers, policymakers, financial institutions, and sustainability consulting organisations. The model allows the analysis of various carbon reduction and energy-saving strategies and trade-offs to balance the financing options and carbon emission reduction to improve the property value. The property investment market should be improved to promote carbon emission reduction. As such, these advancements can meet the different requirements of investors and developers while popularising energy saving and carbon reduction. This research will also help investors determine tax incentives available to them by choosing carbon reduction strategies for their investment properties and providing guidance for investment. At the state or council levels, the governments will be interested in cost-effective interventions for investment properties that can stimulate a significant emission reduction to support the current goal of achieving net zero by 2050. Especially, when developing tax incentive schemes for investment properties, cost-effective interventions should be considered. The climate action programs will also be beneficial through the carbon financing and tax incentive as they could prioritise the best possible scenarios for a given situation.

The candidate will work on defining the research question and the scope of the proposed research project. The candidate is expected to further work on the literature review to refine the research gap and collect and analyse data as part of this research project. The candidate will require qualitative and quantitative data analysis skills.

Where you’ll be based 

The candidate will in a favourable position where there is a good opportunity to collaborate with a multidisciplinary team, including researchers of the Sustainable Infrastructure and Resource Management (SIRM). The candidate will also closely work with different stakeholders, such as sustainable consultant organisations, property development organisations, and financial institutions, to collect secondary data required for the project. The candidate will also get the opportunity to engage with regulatory bodies and government organisations related to climate change and the decarbonisation of the built environment.

Professor Rameezdeen is an active researcher at the Centre for Sustainable Infrastructure and Resource Management (SIRM). His research focuses on the delivery of sustainable construction projects, particularly on the management of resources and stakeholders. He will act as the principal supervisor who will oversee the project. Rameezdeen has extensive research leadership experience, has written more than 110 journal articles, supervised twelve PhD students to completion and mentoring three early career researchers. He has secured more than $3.2 million external research grants during the last five years and has extensive experience working with construction, forestry and water industries. 

Dr Udara Ranasinghe is an Early Career Researcher (ECR) and teaching and research academic at UniSA STEM. She is a member of Sustainable Infrastructure and Resource Management (SIRM). She will contribute to the project with her knowledge of energy management in buildings. This would be her first opportunity to co-supervise an HDR student. Financial Support

This project is funded for reasonable research expenses. A fee offset for the standard term of the program is available to Australian and New Zealand citizens, and permanent residents of Australia, including permanent humanitarian visa holders. Additionally, any Australian Aboriginal and/or Torres Strait Islander applicant who holds an offer of admission without a living allowance will be eligible for the Aboriginal Enterprise Research Scholarship. This scholarship is to the value of $45,076 per annum. Any Aboriginal Enterprise Research Scholarship recipient will also receive a fee waiver. Where an international applicant holds an external scholarship or sponsorship a full or partial fee waiver may apply in some circumstances for exceptional applicants.  Other international applicants will be required to pay full tuition fees of approximately [$41,700] per annum (2024 rates).  

Eligibility and Selection 

This project is open to application from both Domestic and International applicants. Applicants must meet the eligibility criteria for entrance into for a PhD. 

All applications that meet the eligibility and selection criteria will be considered for this project. A merit selection process will be used to determine the successful candidate.

The successful applicant is expected to study full-time and to be based at our Mawson Lakes Campus in the north of Adelaide. Note that international students on a student visa will need to study full-time.

Essential Dates 

Applicants are expected to start in a timely fashion upon receipt of an offer. Extended deferral periods are not available. Applications close on Friday, 10th of May.