Lower-cost green finance available to help businesses and farmers cut emissions
CEFC and NAB have launched a $300 million green finance program to help businesses, manufacturers, and farmers access lower-cost loans for emissions reduction investments as part of Australia’s transition to net zero.
A new $300 million finance program backed by the Clean Energy Finance Corporation (CEFC) and National Australia Bank (NAB) is set to make it easier for manufacturers, businesses, and farmers to invest in equipment and practices that reduce emissions. The initiative is designed to lower borrowing costs, supporting industries as they shift towards more sustainable operations.
Support for Industry and Recycling
The NAB Green Finance for Vehicles and Equipment program will help fund a range of projects. Eligible activities include manufacturing key components for renewable energy systems, producing low-emissions vehicles, and expanding recycling facilities. Loans will range from approximately $10,000 to $5 million, assisting businesses to invest in clean technologies.
Richard Lovell, CEFC Executive Director for Debt Markets, said: “Our transition to net zero emissions offers important growth potential right across our economy. This includes exciting new business opportunities for a diverse range of manufacturers and industry, from those involved in the clean energy supply chain to electric vehicles and recycling. At the same time new technologies and production approaches are lifting the sustainability of our farms.”
The program covers a wide selection of assets, from electric trucks and charging stations to solar panels and battery storage. Recycling and waste management initiatives are also eligible, with funding available for projects such as processing recycled glass, metal, and plastic, as well as equipment for repair and refurbishment facilities.
Support for Agriculture
The NAB Agribusiness – Emissions Reduction Incentive program is aimed at helping farmers cut their carbon footprint. Funding can be used for a variety of initiatives, including fertilisers that lower nitrous oxide emissions, methane inhibitors, and improved land-use practices. Loans through this program will range from approximately $1 million to $5 million.
The CEFC has also launched Towards Net Zero Agriculture Pathfinder, an online resource co-developed with CSIRO. The tool provides information on emissions reduction activities and helps farmers estimate their baseline emissions, plan reduction strategies, and identify eligible investments for discounted finance.
Expanding Green Finance Options
The CEFC has previously worked with co-financiers like NAB to help fund nearly 80,000 projects across Australia. These programs aim to provide businesses with practical incentives to invest in cleaner technology and reduce emissions while ensuring the benefits of CEFC financing flow directly to customers through lower interest rates.
NAB is training bankers to help business customers navigate climate-related financial decisions. The bank aims to ensure that customers not only understand climate risks but also have access to affordable finance options to support their transition.
