Farmers offered $300m in discount loans for solar, batteries, EVs, seaweed and windbreaks

From planting carbon-sequestering windbreaks to feeding cows seaweed to stop them burping as much methane, Australia’s green bank wants to make it easier for farmers to cut emissions.

The Clean Energy Finance Corporation (CEFC) has teamed up with National Australia Bank to offer lower-cost green loans for farmers embarking on a range of emissions-slashing activities.

The announcement comes hot on the heels of an arrangement with Rabobank to offer concessional loans to landowners specifically for covering the upfront cost of planting native trees to attract carbon credits.

CEFC head of natural capital Heechung Sung said the agricultural sector had been important to the bank for a while.

“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,” she said.

A total of $300 million in CEFC capital has been earmarked for cheap loans for industry decarbonisation through NAB-run programs, including a “meaningful” 1.15 per cent discount for farmers.

Examples of eligible methods include low-emissions fertilisers and methane-reducing livestock feed additives, such as the red seaweed product developed by the CSIRO. It will also include zero emission vehicles and farm equipment, solar, and batteries.

Ms Sung said these products typically came with a cost.

“What we’re saying to farmers is ‘if you’d like to purchase these methane inhibitors for your animal, even, you know, trial it out, we’d be happy to support it’,” she said.

The announcement has been made alongside a new CSIRO-developed tool to help farmers navigate emissions reduction plans and identify any opportunities for low cost finance on the way.

Ms Sung said the freely-available resource would help farmers understand the carbon footprint of their properties and explore opportunities to cut emissions.

NAB Group executive for business and private banking Rachel Slade said businesses now recognised the opportunities of going green.

“Providing lower-cost, green finance makes it easier for Australian businesses to invest in technologies and practices that reduce emissions and operating costs, drive long-term business growth and enhance their competitiveness,” Ms Slade said.

AAP