The Hon Chris Bowen MP, Minister for Climate Change
The Hon Julie Collins MP, Minister for Agriculture, Fisheries and Forestry
Farmers, agri-businesses and equipment purchasers are now eligible for discounted loans to help roll out a range of long-term cost savings initiatives that reduce emissions, thanks to a $300 million commitment from the Clean Energy Finance Corporation (CEFC) supported by the Albanese Government.
Discounts on interest rates of up to 1.15 per cent will be available to eligible borrowers through NAB under the new green asset finance investment program with the CEFC.
A Green Finance for Vehicles and Equipment product is tailored to support the purchase of electric, plug-in hybrid and hydrogen vehicles, utes, trucks and heavy equipment. The Emissions Reduction Incentive product is designed to provide a cheaper financing solution for farmers to reduce emissions across their operations.
Loans from the Emissions Reduction Incentive program for farmers are expected to range between $1 million and $5 million, meaning farmers could save more than $57,000 a year in borrowing costs when they invest in technologies and practices that will deliver environmental and financial benefits.
Farmers can opt to keep the saving, or have it reinvested in on-farm practices, such as switching to higher efficacy enhanced fertilisers which reduce nitrous oxide emissions, adopting methane inhibitors, or undertaking changed land-use practices that can increase farm yield, capture carbon, and decrease emissions.
Comments from the Minister for Climate Change and Energy, Chris Bowen
"Reducing emissions and making a profit are not mutually exclusive. Increasingly, we're seeing international supply chains demanding cleaner, greener products and practices, with buyers either paying a premium for green goods, or penalising higher emissions products.
"We want Australian farmers, business and manufacturers to be as competitive as possible in global markets and be supported to get there as cheaply and efficiently as possible.
"The former Government were determined to ignore the huge opportunities for Australia's farming communities. The Albanese Government wants more than that for regional Australia and for our farmers and discounted loans are another step towards making that happen."
Comments from the Minister for Agriculture, Fisheries and Forestry, Julie Collins
"Australian agriculture has a reputation internationally for high standards of environmental sustainability.
"It's a track record we can be proud of, but we can't rest on our laurels. Working together will help everyone continue to do better.
"There is no one way to reduce emissions on a farm, but these loans mean our farmers can access the capital they need to make changes that are good for their businesses.
"Australian agriculture has a wonderful story to tell, and these loans are another tool our farmers can access to keep building sustainability into their businesses."
