Businesses increase uptake of green loans, with commercial real estate leading new lending
Citing increased demand for sustainable finance, NAB has announced it has provided more than $2 billion in new green business loans to support Australia’s shift towards a low-carbon economy.
Green lending forms part of the bank’s broader climate strategy, which aims to deliver $80 billion in environmental financing between the 2024 and 2030 financial years. Recent activity reflects growing interest from businesses seeking to invest in energy-efficient equipment, electric vehicles, sustainable agriculture, and upgrades to commercial properties.
Casey Morecroft, corporate banking executive at NAB, said customers are increasingly considering green finance to reduce costs, improve sustainability, and strengthen their long-term prospects.
“Until recently, sustainable finance was mostly reserved for Institutional clients because of high compliance costs and limited incentives,” Morecroft (pictured right) said. “But our sustainable finance team has changed all that for NAB customers by offering simple value add products and forming strategic partnerships to offer better incentives which has helped unlock this new $2 billion portfolio.
“It’s exciting to see how quickly businesses are embracing these new options. We’re now seeing small and medium-sized enterprises take up green finance, not just large corporates. Innovations like our recent partnership with the CEFC and emissions-based discounts on green finance for equipment, vehicles and agribusiness are helping businesses lower costs and emissions while building long-term resilience.”
The commercial real estate sector accounted for the largest portion of NAB’s new green lending in 2025. NAB Green Finance for Commercial Real Estate, introduced in 2024, supports investments in eligible green buildings and retrofits. Qualifying projects include acquiring or owning buildings with a National Australian Built Environment Rating System (NABERS) rating of at least 5.5 stars, developing new buildings with a Green Star Design review rating of ‘five’ or higher, and retrofitting properties to achieve at least a 30% reduction in operating emissions intensity.
July 2025 was NAB’s highest month on record for green lending to agribusiness, including financing for a reforestation and sustainable farming project in Tarago, New South Wales.
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