Newcastle Airport Partners with CommBank to Pioneer Sustainable Aviation

In a bold move towards environmental stewardship, Newcastle Airport has secured a $235 million Green Sustainability-Linked Loan (GSLL) from CommBank to fund a series of innovative sustainability projects. This partnership marks a significant step in the Hunter region’s transition to a low-carbon economy.

Newcastle Airport CEO, Dr Peter Cock, expressed enthusiasm about the airport’s role in promoting sustainable practices. “Our vision is to be the green gateway to the Hunter. With the support of this GSLL, we’re not just talking about sustainability—we’re actively embedding it into every facet of our operations,” Dr Cock said.

A highlight of the airport’s green initiatives is the expansion of its terminal, which has achieved a 5 Star Green Star standard in design. This accomplishment reflects a commitment to environmental responsibility and positions Newcastle Airport as a leader in sustainable infrastructure. The terminal expansion, scheduled for completion by mid-2025, aims to be the first airport terminal in Australia to receive a 5 Star Green Star Buildings rating under the new rating tool from the Green Building Council of Australia (GBCA).

Newcastle Airport has taken a significant leap towards becoming Australia’s green gateway to the Hunter region by securing a $235 million Green Sustainability-Linked Loan (GSLL) from CommBank. This innovative financing will fund a series of pioneering sustainability initiatives, reinforcing the airport’s commitment to environmental stewardship and the broader transition to a low-carbon economy.

A New Standard in Sustainable Aviation

As one of only two airports in Australia to achieve Level 4 Airport Carbon Accreditation by Airports Council International, Newcastle Airport is setting a national benchmark in carbon management. Out of 591 airports in the global ACA Program, only 98 have reached Level 4 or above, placing Newcastle Airport in an elite group leading the charge towards carbon neutrality.

“Our vision is to be the green gateway to the Hunter,” said Newcastle Airport CEO Dr Peter Cock. “With the support of this GSLL from CommBank, we’re not just adopting sustainable practices—we’re integrating them into every aspect of our operations. This loan is directly linked to our ambitious goals of reducing scope 3 emissions, achieving higher ACA levels, and minimising landfill waste across our precinct.”

Terminal Expansion and Green Building Achievements

A highlight of the airport’s green initiatives is the expansion of its terminal, which has achieved a 5-Star Green Star ‘Designed’ Record of Achievement from the Green Building Council of Australia. Scheduled for completion by mid-2025, the terminal aims to be the first airport facility in Australia to receive this rating under the new assessment tool. Additionally, the airport’s Astra Aerolab buildings are designed to target a 5-Star Green Star rating and LEED (Leadership in Energy and Environmental Design) accreditations.

“Attaining a 5-Star Green Star rating for our expanded terminal is a testament to our commitment to sustainability and environmental performance,” Dr Cock noted. “It’s not just about building infrastructure; it’s about leading by example in the aviation industry and supporting the Hunter region’s diversifying economy.”

Key Sustainability Milestones

Over the past few years, Newcastle Airport has made significant strides in its sustainability journey:

• Renewable Energy Adoption: In July 2021, a 99kW solar system was installed on the Newcastle Airport Hangar. Building on this, the airport signed a new energy purchase agreement with Flow Power, enabling it to meet 100% of its energy requirements through renewable sources—achieving net zero scope 2 emissions seven years ahead of the original 2030 target.
• Solar Infrastructure Expansion: Completed in June 2023, the new premium covered car park is constructed from 1,236 solar panels, forming a 710kW system. This installation is set to provide more than 30% of the airport’s electricity needs.
• Carbon Offsetting Initiatives: The airport is working with Tasman Environmental Markets to offset scope 1 emissions by investing in native bushland regeneration projects across New South Wales.
• Supporting Electric Vehicles: Six electric vehicle charging bays were installed for passenger use in June 2023, promoting the adoption of cleaner transportation options.

CommBank’s Support and Vision

CommBank’s GSLL is closely tied to Newcastle Airport’s sustainability targets, with interest rates linked to the airport’s progress against these goals.

“We’re delighted to extend our partnership with Newcastle Airport and support the growth and sustainability of the Hunter and Newcastle region,” said Vanessa Nolan-Woods, General Manager of Regional & Agribusiness Banking at CommBank. “The airport’s commitment to setting and achieving ambitious environmental targets aligns with our dedication to sustainable outcomes.”

Looking Ahead

Dr Cock emphasised the broader impact of these initiatives on the region and the industry. “Our commitment to sustainability is about more than just the airport—it’s about leading the way for a region in transition. We’re contributing to global efforts to combat climate change and supporting the Australian Government’s pledge to achieve net zero greenhouse gas emissions by 2050.”

Future plans include investing in emerging aviation technologies, collaborating with partners to further reduce scope 3 emissions, and enhancing solar and battery energy infrastructure.

“With CommBank’s support through the GSLL and our ongoing sustainability initiatives, we’re confident in our ability to become the airport our region deserves—a true global gateway that embodies environmental responsibility,” Dr Cock concluded.

Key Facts:

• Green Gateway Commitment: Newcastle Airport is dedicated to being the green gateway to the Hunter region.
• Airport Carbon Accreditation: Achieved Level 4 Airport Carbon Accreditation by Airports Council International, one of only two airports in Australia to do so.
• 5-Star Green Star Rating: The terminal expansion has received a 5-Star Green Star ‘Designed’ Record of Achievement. Astra Aerolab buildings are also targeting similar Green Star and LEED accreditations.
• Solar Power Initiatives: Installed a 99kW solar system on the airport hangar in July 2021 and a 710kW system on the new car park in June 2023, providing over 30% of the airport’s electricity needs.
• Renewable Energy Milestone: Signed an energy purchase agreement with Flow Power, reaching the target of 100% renewable energy seven years ahead of schedule.

About Newcastle Airport

By mid-2025, Newcastle Airport will emerge as a true global gateway, attracting both domestic and international services. Its holistic approach to sustainability—integrating operational changes and financial strategies—is paving the way for a region embracing a sustainable and diversified future.