NAB delivers $2 billion of new green finance to support transition

• Loans meet surging demand for electric vehicles, sustainable farming projects and property upgrades
• Lending delivered through NAB’s sustainable finance offering for SME and corporate customers
• $2bn forms part of NAB’s broader $80bn FY24-30 environmental financing commitment

NAB, Australia’s largest business bank, has delivered more than $2 billion in new green business lending to support the nation’s transition to a low-carbon economy.

The lending, part of NAB’s commitment to scaling sustainable finance solutions and helping businesses to invest in sustainable growth, forms a key part of its broader climate strategy which includes an ambition to deliver $80 billion of environmental financing between FY24 and FY30.  

This new lending has supported a surge in demand from businesses across sectors investing in energy-efficient equipment, electric vehicles, sustainable farming projects and commercial property upgrades.

NAB Executive Corporate Banking, Casey Morecroft said customers were proactively exploring green finance options to help their businesses cut costs, become more sustainable and better position them for long-term growth.

“Until recently, sustainable finance was mostly reserved for Institutional clients because of high compliance costs and limited incentives,” Ms Morecroft said.

“But our Sustainable Finance team has changed all that for NAB customers by offering simple value add products and forming strategic partnerships to offer better incentives which has helped unlock this new $2 billion portfolio.

“It’s exciting to see how quickly businesses are embracing these new options. We’re now seeing small and medium-sized enterprises take up green finance, not just large corporates.

“Innovations like our recent partnership with the CEFC and emissions-based discounts on green finance for equipment, vehicles and agribusiness are helping businesses lower costs and emissions while building long-term resilience.”

Green lending to the Commercial Real Estate (CRE) sector accounted for the largest share of NAB’s new green financing portfolio in 2025.

Launched in 2024, NAB Green Finance for CRE supports investment in eligible green buildings and retrofit projects, including:

• Acquisition and ownership of buildings with National Australian Built Environment Rating System (NABERS) ratings of 5.5 stars or higher
• Development of new buildings with Green Star Design review ratings of 5 or above
• Retrofit projects designed to achieve at least a 30% reduction in operating emissions intensity

One example is NAB’s support of Arrow Capital Partners in refinancing The Zenith, two A-grade office towers in Chatswood, Sydney, each with a 5.5-star NABERS Energy rating. 

Managing Partner at Arrow Capital, Martyn McCarthy said the NAB Green Finance for CRE deal reflected the group’s commitment to investing in high-performing assets that met the sustainability expectations of its tenant customers.

“We were specifically seeking a green loan to enhance our commitment to ESG initiatives across our portfolio. Having a many-decades relationship with the bank, and NAB’s proposition, made it possible without additional costs or complexity,” Mr McCarthy said.

July 2025 also marked NAB’s biggest month on record for agribusiness green lending, including the funding of a reforestation and sustainable farming initiative in Tarago, NSW.

For more information on NAB’s green finance offerings, visit https://nab.com.au/business