Australian bank makes funding available at discounted rates for environmentally sustainable projects
The Commonwealth Bank has launched Agri Green Loan, a new loan to support businesses looking to reduce their environmental impact.
The Australian bank announced a national rollout of the loan following successful pilots with companies including tomato producer Katunga Fresh.
Group executive of business banking Mike Vacy-Lyle said the loan was part of the bank’s commitment to supporting customers transitioning their business and to investing in environmental projects.
“The drive towards greater sustainability is creating more opportunities for agribusinesses,” Vacy-Lyle said.
“Agribusinesses are continuing to take actionable steps to reduce their environmental impact and often also enhance farm productivity. Many of our customers are transforming their operations by investing in new technology and upgrading infrastructure to reduce emissions or adopt more sustainable farming practices.”
Vacy-Lyle said the loan opens the door for more farmers to access funding — at discounted rates — for eligible purposes that reduce their greenhouse gas emissions, build resilience to climate variability, and enhance their natural capital.
“Our first pilot loan is well on its way to supporting Victorian horticultural producer Katunga Fresh, who is investing in the energy efficiency of their glasshouses, which will reduce their emissions intensity,” said Vacy-Lyle.
Katunga Fresh operates 21ha glasshouses and owner Pete Van Den Goor said the loan helped the company with its journey towards net zero.
“It is very pleasing that our bank is actively supporting our sustainability plans to become net zero carbon. The great thing about this project is that it means we are generating operating cost savings while reducing our impact on the environment. It is win-win for us,” said Van Den Goor.