CEFC and NAB back low-cost green finance for industry, farmers

31 January 2025

The CEFC has confirmed a substantial new asset finance commitment, with backing for a $300 million co-finance program with NAB to cut the borrowing costs of manufacturers, businesses and farmers as part of Australia’s transition to net zero emissions.

The CEFC commitment coincides with the launch of Towards Net Zero Agriculture Pathfinder, a practical online resource co-developed by the CEFC and Australia’s national science agency, the CSIRO. Pathfinder¹ includes information on a range of emissions reduction activities, including those which may be eligible for discounted CEFC finance.

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 Lovell

CEFC Executive Director, Debt Markets

The $300 million CEFC commitment is backing discounted interest rates for eligible borrowers² via two tailored NAB programs:

1. 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.

2. 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 Pathfinder resource 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.
• Pathfinder can also be used by farm managers and decision makers as a guide to investment in technologies and practices that yield financial and environmental returns. The resource is also suitable for agriculture consultants and advisers in considering sustainable and profitable farming solutions.
• Customer loans for investments through the NAB Agribusiness – Emissions Reduction Incentive program are expected to range from ~$1 million to $5 million.

Our new Pathfinder resource supports a whole-of-farm approach to emissions reduction. By drawing on the considerable experience and expertise of the CSIRO, we’re providing farmers with access to credible information about how to establish their baseline emissions and chart an action plan to lower their emissions. And together with NAB, we’re giving farmers access to discounted finance to support their long-term investment decisions.

Heechung Sung

CEFC Head of Natural Capital

Transition to net zero emissions

CEFC Executive Director, Debt Markets, Richard Lovell 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.

“These tailored programs are a tried and tested way for the CEFC to use our finance to accelerate Australia’s transition to net zero emissions. By tapping into the considerable customer base of our co-financiers, our capital is giving borrowers a meaningful incentive to cut their emissions and be part of our clean energy economy of the future.

“In fact, our finance has contributed to close to 80,000 such projects since we began investing, delivered via co-financiers such as NAB. Importantly, the benefits of the CEFC finance are passed through to customers in the form of lower interest rates.”

Green asset finance

NAB Group Executive for Business and Private Banking Rachel Slade said the green asset finance investment underscored NAB’s commitment as Australia’s largest business and agri lender to support businesses and farmers transition to a more sustainable future.

“Providing lower-cost, green finance makes it easier for Australian businesses to invest in technologies and practices that reduce emissions and operating costs, drive long-term business growth and enhance their competitiveness,” Ms Slade said.

“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.”

Benefits for agriculture sector

CEFC Head of Natural Capital Heechung Sung added: “We are excited to be working with NAB on delivery of this discounted finance to farmers, drawing on the skills and connections of NAB’s extensive network of agribusiness bankers.

“The agriculture sector is at the heart of the net zero transition, with challenging climate conditions impacting Australia-wide. Equally, we see enormous opportunity. In lowering their carbon footprint, farmers can become more resilient to climate change while also lifting the appeal of their produce, as consumers increasingly preference sustainable products.

“Our new Pathfinder resource supports a whole-of-farm approach to emissions reduction. By drawing on the considerable experience and expertise of the CSIRO, we’re providing farmers with access to credible information about how to establish their baseline emissions and chart an action plan to lower their emissions. And together with NAB, we’re giving farmers access to discounted finance to support their long-term investment decisions.”

For more information, or to try out the Pathfinder tool, please visit: www.cefc.com.au/pathfinder 

1 Towards Net Zero Agriculture Pathfinder is available via the CEFC website, at no cost to farmers, managers or advisers.

2 The CEFC is not involved in the assessment or approval of individual loan applications. Contact NAB for more information.