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Commercial real estate customers seeking to invest in or retrofit a climate-friendly building are now eligible for a new green finance program.
The National Australia Bank (NAB) has launched a new commercial finance opportunity, Green Finance for Commercial Real Estate (CRE), to assist CRE investors and developers in reducing greenhouse gas emissions.
Rowan Munchenberg, NAB executive for business lending, noted the importance of this program in helping Australia decarbonise and improve the climate resilience of our built environment.
“With about 10 per cent of Australia’s greenhouse gas emissions stemming from the operations of commercial buildings, there is clearly a need to mitigate the sector’s environmental impact and reduce its greenhouse gas emissions,” said Mr Munchenberg.
He added: “As Australia continues to transition toward net zero, we’re working alongside our customers as they respond to changing consumer demand and strive to decarbonise.”
The executive explained that net zero endeavours have the potential to offer significant benefits to commercial investors, but assistance is needed to fully realise these transformations.
Mr Munchenberg said: “Business owners know there are significant economic and environmental opportunities in reducing emissions, but they need commercial solutions to assist them.
“With increasing evidence commercial buildings with stronger environmental ratings achieve more favourable economic outcomes, it’s likely demand for energy-efficient and environmentally friendly property will continue to grow.”
NAB Green Finance for CRE will support investment for:
- The purchase of existing commercial buildings that have a minimum 5.5 star rating from the National Australian Built Environment Rating System (NABERS).
- The development of new commercial buildings with a Green Star rating of five or higher.
- Retrofit projects that will reduce carbon emissions by at least 30 per cent.
The NAB Green Finance for CRE initiative was backed up by DNV Business Assurance, which provided a second party opinion stating that the new program is in alignment with the Green Loan Principles published by the Asia Pacific Loan Market Association, the Loan Market Association and the Loan Syndications and Trading Association, released in February 2023.
Mr Munchenberg stated that the latest loan program is just one of many initiatives the big four bank is launching to support Australia’s net zero transition.
NAB stated that it has invested in a “bank-wide climate training program” with the Melbourne Business School to equip employees with “knowledge and skills to better support customers with their transition efforts”.
“Our climate trained CRE bankers are working with eligible customers, offering insights and expertise to help advance the development of specific commercial real estate projects,” said Mr Munchenberg.
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