CEFC and CommBank commit $100M to energy efficient asset finance program for business
6 October 2016
- A significant number of businesses plan to upgrade their equipment in the next 12 months
- Major potential for transport, agriculture, construction sectors to benefit from clean energy technologies
The Clean Energy Finance Corporation (CEFC) and Commonwealth Bank have launched a new $100 million Energy Efficient Equipment Finance program to provide Australian businesses and not-for-profits with lower cost finance for a wide range of assets that meet certain energy efficiency standards.
The new program enables businesses to benefit from reduced energy and fuel costs, while also lowering their carbon emissions. The program will support business investment in energy efficient and lower emissions vehicles, equipment, machinery and fixtures that meet the CEFC's investment guidelines.
The finance will provide a 0.70 per cent discount on the bank's standard asset finance rate for assets ranging of $10,000 to $5 million, where the asset's technologies meet the CEFC's investment guidelines. Eligible investments include a broad range of fuel efficient vehicles, energy efficient lighting and fittings, farm machinery, commercial lighting and rooftop solar panels.
CEFC CEO Oliver Yates said the program provided businesses with compelling reasons to invest in energy efficient and renewable technologies.
"In a world that is transitioning to cleaner energy through the rapid global uptake of technologies like solar, battery storage and electric vehicles, it is imperative Australian businesses position themselves to take advantage of technologies that will help them work smarter and save them money through reduced energy use and operating costs," Mr Yates said.
"This new program financed by the CEFC and offered through the Commonwealth Bank provides a great opportunity for businesses to invest now in energy efficient, low emissions and renewable energy technologies."
Business interest in energy efficient assets continues to grow steadily
The CommBank Asset Financing Australia (AFA) Index Report 2016, conducted by East & Partners, showed steady increases in both the number of businesses using, and planning to use, energy efficient vehicles or equipment.
The CommBank AFA Index Report surveyed more than 800 businesses throughout the 2015-16 financial year. Findings include:
- One in five businesses (20.5 per cent) plan to use energy efficient vehicles or equipment in the next 12 months (up from 14.7% from the beginning of the year).
- One in eight businesses (12.5 per cent) currently use energy efficient vehicles or equipment (up from 9.5 per cent from the beginning of the year).
- The number of businesses who had no intention to use energy efficient vehicles or equipment fell (from 59.0% to 45.1%) in the 12 months to June 2016.
Commonwealth Bank Managing Director Asset Finance, David Farr, said: "We know energy efficient assets help reduce operating costs, but we're seeing businesses increasingly aware of other benefits to their business, reducing their carbon footprint, adding value to their brand and improving their productivity.
"In particular, we see huge potential for the transport, agriculture and construction industries to realise major benefits from upgrading to energy efficient technologies, including fuel efficient vehicles, and energy efficient lighting and refrigeration," Mr Farr commented.
Commonwealth Bank reaffirms commitment to customers and a sustainable future
The Energy Efficient Equipment Finance program builds on the bank's sustainability and community initiatives, which aim to improve social outcomes and financial wellbeing through innovation in products, services and programs.
It also builds on a working relationship between the Commonwealth Bank and the CEFC, which have been lending to Australian businesses together since the CEFC began investing in 2013.
Commonwealth Bank Group Executive for Institutional Banking and Markets Kelly Bayer Rosmarin said "This program forms a part of our commitment to proactively seek innovative ways to work with our business and corporate customers towards a sustainable, lower-carbon future and economy."
ABOUT COMMONWEALTH BANK
Commonwealth Bank is Australia's leading provider of integrated
financial services, including retail, premium, business and
institutional banking, funds management, superannuation, insurance,
investment and share-broking products and services.
Commonwealth Bank's Institutional Banking & Markets (IB&M) division has global reach extends through offices in Auckland, Beijing, Hong Kong, Houston, London, New York, Shanghai, Singapore, Tokyo and throughout Australia. IB&M has core capabilities across transactional and working capital banking, debt financing solutions, financial markets and risk management products. The business is responsible for developing and providing products for our corporate clients.
Media release, 2016