Victoria Power Network Sustainable Financing Framework Second Party Opinion (2025)

Project Details

Project

Victoria Power Networks Sustainable Financing Framework Second Party Opinion (2025)

Client

Victoria Power Networks

Project Type

Green Bond/Loan

Industry Group

Utilities

Use of Proceeds

Renewable energy; Energy efficiency;

Location

Australia

Evaluation Date

Oct 2025

Evaluation Summary

Victoria Power Networks (VPN) has developed the Victoria Power Networks Sustainable Financing Framework, dated October 2025, under which it intends to issue green bonds, obtain green loans and other appropriate green financing instruments, such as derivatives and guarantees to fund projects in Victoria, Australia in two environmental categories.

We have assessed the overall Sustainability Contribution of the Framework as Strong, based on the average Sustainability Contribution of the Framework’s two use of proceeds categories. As per our methodology, we have applied equal weighting across categories.

Under the Renewable Energy category, VPN intends to finance or refinance environmental expenditures related to transmission and distribution (“T&D”) infrastructure, supporting VPN’s low voltage network that enables the exchange of renewable electricity in Victoria. Victoria’s grid is part of Australia’s National Electricity Market (NEM), which is on a decarbonization trajectory, with over 67% of newly connected generation capacity in the past five years emitting less than 100 gCO₂e/kWh.²

Victoria has supported this shift by adding substantial renewable energy capacity; still, the state’s standalone grid-wide emissions intensity remains elevated at approximately 710 gCO₂e/kWh. Nevertheless, combined with investments in the Energy Efficiency category towards enabling ICT and Smart Management Systems, VPN’s overall investments in the

two categories are expected to strongly enable a more flexible and resilient electricity grid, supporting Victoria’s decarbonization goals.

We have assessed the Framework as Aligned with the Green Bond Principles 2025 and Green Loan Principles 2025.