A green bond powering Victoria’s net zero grid

Victoria Power Networks’ inaugural green bond is accelerating critical grid upgrades, unlocking renewable connections and supporting Australia’s low-emissions future.

• First VPN green bond funds key infrastructure
• Certified independently, reducing greenwashing risk
• Find out more about Pendal’s Responsible Investing capabilities 

INCREASING electrification, expanding the use of non-fossil fuel sources of electricity, and connecting renewables to the grid are the three most important components of achieving a low-emissions future for Australia.

In the final quarter of 2025, Victoria Power Networks came to market with their first green bond that seeks to directly support these priorities by funding critical infrastructure upgrades and enabling more renewable energy to flow to homes and businesses across Victoria.

Victoria Power Networks (VPN) is a major electricity distribution network that manages the poles, wires and electricity across Melbourne and western and central Victoria. It operates under the names CitiPower and Powercor.

The net proceeds of the VPN Green Bond are to be used to finance or refinance eligible green projects that satisfy the relevant eligibility criteria as determined by VPN. The intention of these eligible green projects is to work towards VPN’s goal which seeks to, amongst other things, reduce carbon emissions.

This includes investments in low voltage network infrastructure, advanced operational technology systems, and the rollout of smart meters.

These upgrades are essential for integrating more renewable energy into the grid, making it easier for homes and businesses to access clean power and manage their electricity use.

Significantly, this bond helps fund the financing of new transmission lines to connect renewable energy projects to the grid.

These investments are crucial for reducing carbon emissions, improving grid reliability, and supporting Victoria and Australia’s net zero targets.

The VPN Green Bond is also noteworthy as the first Australian bond to align to two new standards: the Australian Sustainable Finance Taxonomy and the European Union Taxonomy for climate change mitigation. [1]

The bond is certified by the Climate Bonds Initiative[2] and has received a second-party opinion from Sustainalytics[3]. Aligning to standards and external certification is an important way to reduce greenwashing risk.

[1] ISS-External-Review-AU-and-EU-Taxonomy-VPN-3-Oct-2025.pdf

[2] Certificate-VPN-1

[3] Sustainalytics-SPO-VPN-Sustainable-Financing-Framework-3-Oct-2025.pdf

Find out about

Regnan Credit Impact Trust

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George Bishay,
Head of Credit and
Sustainable Strategies