As part of its commitments to support customers transitioning their business and to invest in environmental projects, Commonwealth Bank today announced the national rollout of its Agri Green Loan.
Today’s launch follows , and opens the door for more farmers to access funding – at discounted rates – for eligible purposes that reduce their greenhouse gas emissions, build resilience to climate variability, and enhance their natural capital.
Group Executive of Business Banking Mike Vacy-Lyle said agriculture is a core sector for the Australian economy and it’s crucial it’s supported to deliver a purposeful transition.
“The drive towards greater sustainability is creating more opportunities for agribusinesses,” Mr Vacy-Lyle said.
“Agribusinesses are continuing to take actionable steps to reduce their environmental impact and often also enhance farm productivity. Many of our customers are transforming their operations by investing in new technology and upgrading infrastructure to reduce emissions or adopt more sustainable farming practices.”
Queensland soil restoration innovator VRM Biologik participated in CBA’s Agri Green Loan pilot to accelerate the implementation of its patented regenerative farming technology. VRM Biologik has developed unique technology to restore and enrich soil, enabling farmers to enhance yields and optimise growing environments in challenging conditions.
VRM Biologik Founder and President Ken Bellamy has been an advocate of sustainable agriculture for more than 30 years. He said CBA’s Agri Green Loan pilot helped to align the company’s sustainability, strategic and financial goals which has generated positive environmental outcomes for the business and its clients.
“Our goal is to reduce the risk of food scarcity and support agriculture’s productivity and drought resilience,” Mr Bellamy said.
With the support of CBA’s Agri Green Loan, the company successfully used its regenerative farming practices to grow mustard from seed during frost this winter, at a property near Miles in Western Queensland.
“The Agri Green Loan helps the whole industry to become more sustainable as farmers can look to improve their own regenerative growing practices or invest in other environmental projects,” Mr Bellamy said.
The Agri Green Loan is part of a range of product solutions that support agribusiness customers to enhance the sustainability of their business and manage the impacts of the transition, including Sustainability Linked Loans and Energy Efficient Equipment Finance.
