Australian manufacturers, businesses, agribusinesses and farmers will be able to secure interest rate discounts and lower borrowing costs as part of a $300 million co-finance program between NAB and CEFC.

$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.

  • Gorgritch_Umie_KillaOPM
    1·
    1 month ago

    Farmers for Climate Action Response

    FCA CEO Natalie Collard said it was fantastic to see the Government using the carrot rather than the stick with farmers on emissions reduction.

    “This is exactly the sort of program our 8400 farmer members have been calling for. Farmers want to know how to reduce emissions whilst remaining profitable, and this program gives them a way to do that, if they choose. That’s how you keep farmers farming. Credit where credit is due,” Ms Collard said.

    “Farmers know why we need to reduce emissions – this year’s bushfires remind us that climate change is hurting farmers now.

    “We warmly welcome this scheme because it gives farmers choice. If a farmer wants to choose a hydrogen, hybrid or electric powered machinery, the farmer can choose to take a low-interest loan to get it. As the technology proves itself, other farmers can also choose low-emissions machinery if they wish.