Aussie Bank Launches Business Green Loan

Commonwealth Bank of Australia (CBA) has launched a new loan to support Australian businesses to finance assets and initiatives that can reduce emissions, build climate change resilience and protect natural resources.

Speaking at the Bank’s recent ‘Momentum’ sustainability conference, CBA Executive General Manager Business Lending Grant Cairns said the Business Green Loan is targeted at commercial businesses seeking competitive funding for sustainability practises such as renewable energy projects, energy efficient building upgrades, and pollution reduction initiatives.

“There has been a big shift in the types of conversations we are having with our business customers, from small businesses to our largest corporate clients – customers recognise the opportunity to implement sustainable practices that not only advance their environmental goals but also lower operating costs,” Cairns added.

Cairns said CBA can tailor terms to suit the individual needs of customers depending on their projects, assets and funding needs.

“The Business Green Loan complements Business Banking’s existing solutions that can support businesses to action their sustainability goals, including our Green Vehicle and Equipment Finance offering, Sustainable Finance solutions and our Agri Green Loan.”

Eligible assets and projects for the Business Green Loan may include:

  • Renewable energy such as solar, wind, hydropower and batteries 
  • Energy efficient assets such as highly efficient motors, lighting, heating and cooling
  • Energy efficient building upgrades
  • Recycling, refurbishment, composting projects
  • Water efficiency and pollution prevention initiatives

CBA’s commitment to supporting customers with their sustainability transition is reflected in the bank’s 2030 Sustainability Funding Target (SFT). As part of the SFT, CBA aims to deliver A$70 billion in cumulative funding across a range of sustainable industries and asset types including renewables, energy efficiency, low carbon transport, commercial property, land and agriculture, waste management and sustainability-linked lending.

The launch of the loan coincided with Momentum 2024, CBA’s third sustainability conference.