Banking News

CBA and CEFC launch $100 million energy efficient finance program

(6 October 2016 – Australia) Australia’s largest bank, Commonwealth Bank (CBA) and the Clean Energy Finance Corporation (CEFC) have launched a A$100 million Energy Efficient Equipment Finance program to provide lower cost finance for energy efficient assets.

In a statement, CBA said the program has been launched “to provide Australian businesses and not-for-profits with lower cost finance for a wide range of assets that meet certain energy efficiency standards.”

According to the bank, the new program enables businesses to benefit from reduced energy and fuel costs, while also lowering their carbon emissions. It will support business investment in energy efficient and lower emissions vehicles, equipment, machinery and fixtures that meet the CEFC’s investment guidelines.

CEFC CEO Oliver Yates said: “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.

“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.”

The bank’s 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.”

• The announcement of the program follows the release of the latest results of the CommBank Asset Financing Australia (AFA) Index Report, conducted by East & Partners. The Index, which interviewed more than 800 Australian businesses, showed:
• One in five businesses (20.5 percent) plan to use energy efficient vehicles or equipment in the next 12 months (up from 14.7 percent from the beginning of the year).
• One in eight businesses (12.5 percent) currently use energy efficient vehicles or equipment (up from 9.5 percent 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 per cent to 45.1 per cent) 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,” Farr added.