NAB lower-cost loans back industry and farmers investing in a more sustainable future
Two tailored programs drive emissions reduction
Farmers, manufacturers and businesses can draw on two CEFC-backed NAB loan programs to invest in zero emissions vehicles, manufacturing equipment, recycling facilities and on-farm emissions reduction activities.
$300 million
CEFC commitment
Finance
for farming, manufacturing
2 programs
discounted rates
Business customers recognise the opportunities that come from green investment and transitioning to more sustainable business practices. We are training bankers on the key climate risks our customers are facing. Providing customers with not just the know-how but the access to low-cost green finance will help drive meaningful change.Rachel SladeGroup Executive for Business and Private Banking, NAB
Our investment
The CEFC is working with Australia’s largest business and agri lender NAB to cut borrowing costs for manufacturers, businesses and farmers seeking to invest in emissions reduction activities.
The CEFC has committed a total of $300 million to support discounted interest rates for eligible borrowers via two tailored programs:
NAB Green Finance for Vehicles and Equipment program: $200 million in CEFC capital to support a 0.5 per cent interest rate discount on investments in manufacturing, transport and recycling, as well as industry more broadly. Eligible activities may include:
- Manufacturing: Projects in production and/or manufacturing facilities which produce key components used in renewable energy generation, including in solar, wind and battery storage
- Transport: Manufacturers focused on the production of net zero emissions vehicles, from cars and trucks to buggies and earthmoving equipment
- Recycling: Facilities which repair or re-use products or components, as well as those producing recycled glass, metal, paper and plastic from post-consumer waste.
- Customer loans for investments through the NAB Green Finance for Vehicles and Equipment program are expected to range from ~$10,000 to $5 million.
NAB Agribusiness – Emissions Reduction Incentive program: $100 million in CEFC capital to support a 1.15 per cent interest rate discount backing financing solutions for farmers to reduce the emissions of their operations.
- The finance can be used for a range of emissions reduction activities, from enhanced fertilisers which can reduce nitrous oxide emissions to methane inhibitors and changed land-use methodologies
- It also encourages farmers to draw on the Towards Zero Agriculture Pathfinder resource, a joint initiative of the CEFC and CSIRO, to estimate their baseline emissions as part of their ongoing farm emissions reduction plans, as well as information on investments which may be eligible for discounted finance
- Customer loans for investments through the NAB Agribusiness – Emissions Reduction Incentive program are expected to range from ~$1 million to $5 million.
The CEFC does not provide loans directly to consumers. Visit the NAB website for more information.
OUR IMPACT
Transition opens up new business opportunities
The industry and agriculture sectors recognise the opportunities that can come from green investment and transitioning to more sustainable business practices, as Australia transitions to net zero emissions.
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.Richard LovellExecutive Director Debt Markets, CEFC
Combining finance and science to cut emissions
The CEFC has a track record in delivering tailored asset finance programs to Australian businesses and farmers for investment in technologies and practices that reduce emissions.
The CEFC has further worked to support the sector by bridging a critical knowledge gap for farmers keen to invest in sustainable practices, by teaming up with CSIRO to develop the Towards Net Zero Agriculture Pathfinder, an online tool that enables Australian farmers to explore and adopt emissions reductions practices that suit their business mix and farm management goals.
For more information see the Towards Zero Agriculture Pathfinder.
