How businesses and farmers can secure big discounts on new green finance

_{Published on 31.01.2025}

• Between 0.5% and 1.15% interest rate discounts on lending for green equipment finance and agribusiness emissions reduction
• Agribusinesses and farmers could save up to $57,500 per year on a $5 million loan with a 1.15% interest rate discount
• $300 million in discounted green loans supported by Clean Energy Finance Corporation

Australian manufacturers, businesses, agribusinesses and farmers will be able to secure interest rate discounts and lower borrowing costs as part of a $300 million program supported by NAB and the Australian Government’s Clean Energy Finance Corporation (CEFC).

Together with NAB, the CEFC will provide $300 million in capital to back discounted interest rates for eligible business borrowers to invest in things like green vehicles and equipment and for eligible agribusinesses and farmers to reduce the emissions of their operations.

$200 million to support NAB’s Green Finance for Vehicles and Equipment providing discounted green finance for businesses and manufacturers

A 0.5% interest rate discount on investments in manufacturing, transport and recycling as well as industry more broadly. Some eligible activities might 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 and vehicles: Purchase of electric vehicles, hybrid utes, and electric or hydrogen trucks, buses and heavy equipment. Also, 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.

A business that secures a $5 million loan with a 0.5% interest rate reduction would save around $25,000 per year.

$100 million to support NAB’s Agribusiness Emissions Reduction Incentive program providing discounted green finance for farmers and agribusinesses to reduce emissions

A 1.15% interest rate discount on finance solutions which back farmers and agribusinesses to reduce their emissions.

• 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 estimate their baseline emissions as part of their ongoing farm emissions reduction plans and to consider investments in technologies and practices that yield financial and environmental returns.

Customer loans for investments through the NAB Agribusiness Emissions Reduction Incentive program are expected to range from ~$1 million to $5 million.

An agribusiness that secures a $5 million loan with a 1.15% interest rate reduction would be able to save $57,500 per year or invest that money back into an eligible green project such as methane or nitrogen inhibitors or re-forestation.

NAB Group Executive for Business and Private Banking Rachel Slade said the green asset finance supported by CEFC underscored NAB’s commitment as Australia’s largest business and agri lenders 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,” Ms Slade said.

NAB Executive for Regional and Agribusiness Khan Horne said an interest rate discount would help farmers and agribusiness operators invest in new technologies.

“Farmers and agribusinesses know their farms businesses best and this lower cost green finance is about helping them to invest in emissions reduction activities that are best suited to their business,” Mr Horne said.

“Lower cost green finance will help farmers invest in machinery, technologies and practices that not only reduce their emissions but can help them drive long-term growth.

“A 1.15 per cent interest rate discount will back farmers and agribusinesses to consider a range of activities including enhanced fertilisers to reduce nitrous oxide emissions right through to methane inhibitors and changed land-use methodologies.”

“In all my travels I’ve never met a customer that does not want to replace any machinery that is not more efficient, cost effective and overall productive.

“This is a cracking initiative and a real win for Australian agriculture. I want to acknowledge this partnership with the CEFC,” Mr Horne said.

Business customers and farmers wanting to discuss a loan under the program can speak with their banker.

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