NAB agribusiness loans back farmers investing in a more sustainable future
Two tailored programs drive emissions reduction
Farmers can draw on the CEFC-backed NAB Agribusiness Emissions Reduction Incentive Program to invest in technologies and projects that support on-farm emissions reduction.
$100 million
CEFC commitment
Farming
focus
Discounted
loans
The agriculture sector is at the heart of the net zero transition, with challenging climate conditions impacting Australia-wide. Equally, we see enormous opportunity. In lowering their carbon footprint, farmers can become more resilient to climate change while also lifting the appeal of their produce, as consumers increasingly preference sustainable products.Heechung SungExecutive Director, CEFC
Our investment
The CEFC is working with Australia’s largest business and agri lender, NAB, to cut borrowing costs for farmers seeking to invest in emissions reduction activities.
The CEFC has committed $100 million to support the NAB Agribusiness – Emissions Reduction Incentive Program, as part of a $300 million investment commitment that also backs NAB Green Finance for Vehicles and Equipment.
The CEFC capital for the NAB Agribusiness program supports a 1.15 per cent interest rate discount on loans that can be used for a range of emission reduction activities including:
- Purchase of fertiliser with nitrification inhibitors
- Purchase of methane inhibitors
- Reforestation
- Pasture rejuvenation with legumes
- Solar and battery projects.
Customer loans are expected to range from $1 million to ~$5 million.
The NAB program encourages farmers to draw on the Towards Zero Agriculture Pathfinder resource, a joint initiative of the CEFC and CSIRO, to estimate their baseline emissions as part of their ongoing farm emissions reduction plans, as well as information on investments which may be eligible for discounted finance.
Farm managers and decision makers can use Pathfinder as a guide to investment in technologies and practices that yield financial and environmental returns. The resource is also suitable for agriculture consultants and advisers in considering sustainable and profitable farming solutions.
The CEFC does not provide loans directly to consumers. Visit the NAB website for more information.
OUR IMPACT
Combining finance and science to cut emissions
The CEFC has a track record in delivering tailored asset finance programs to Australian businesses and farmers for investment in technologies and practices that reduce emissions.
The CEFC has further worked to support the sector by bridging a critical knowledge gap for farmers keen to invest in sustainable practices, by teaming up with CSIRO to develop the Towards Net Zero Agriculture Pathfinder, an online tool that enables Australian farmers to explore and adopt emissions reductions practices that suit their business mix and farm management goals.
For more information, see the Towards Zero Agriculture Pathfinder.
Investing to drive ongoing sustainability benefits
NAB highlights that investing in more sustainable practices may help farmers to:
- Reduce business costs such as energy, fertiliser and water
- Build resilience and mitigate risk from climate related events
- Enhance business productivity
- Support sustainable farming claims that may strengthen engagement with customers.
