Australia’s biggest business bank, National Australia Bank, has provided more than $2 billion in new green lending to help businesses cut emissions and invest in sustainable growth.
The funds, delivered through NAB’s sustainable finance offerings for small, medium and large enterprises, meet the growing demand for electric vehicles, sustainable farming projects and energy-efficient property upgrades.
The new portfolio forms part of NAB’s broader climate strategy, which aims to deliver $80 billion in environmental financing over the fiscal years 2024-2030.
NAB Executive Corporate Banking Casey Morecroft said more customers are actively seeking green finance to lower costs, strengthen resilience, and reduce emissions.
“Until recently, sustainable finance was mostly reserved for institutional clients because of high compliance costs and limited incentives,” Morecroft said. “Our Sustainable Finance team has simplified the process by offering practical products and strategic partnerships that deliver real value.”
SMEs Join the Green Transition
NAB said small and medium-sized enterprises are now adopting green finance at record levels, signaling a shift in how Australian businesses approach sustainability.
“Innovations like our partnership with the Clean Energy Finance Corp and emissions-based discounts on loans for vehicles, equipment, and agribusiness are helping businesses lower costs while building long-term resilience,” Morecroft said.
The bank has positioned green lending as a growth driver, using financing incentives to accelerate the national transition toward cleaner industries.
Commercial Real Estate Leads in Green Lending
Green loans to the commercial real estate sector accounted for the largest share of NAB’s new portfolio in 2025.
Launched in 2024, the NAB Green Finance for CRE program supports investments in high-efficiency buildings and retrofit projects, including:
- Acquiring and managing properties with a National Australian Built Environment Rating System rating of 5.5 stars or higher
- Developing new buildings rated 5 stars or above under the Green Star Design Review
- Retrofitting projects that achieve at least a 30 percent reduction in operating emissions intensity
Among the projects funded was the refinancing of The Zenith, twin A-grade office towers in Chatswood, Sydney, each with a 5.5-star NABERS Energy rating.
Partners See Long-Term Value
Arrow Capital Partners Managing Partner Martyn McCarthy said NAB’s financing deal reflected the firm’s long-term sustainability ambitions.
“We specifically sought a green loan to strengthen our ESG initiatives,” McCarthy said. “Our long relationship with NAB and its straightforward proposition made the process smooth and cost-effective.”
Agribusiness Lending Hits Record
July 2025 marked NAB’s strongest month for agribusiness green lending, with financing for a reforestation and sustainable farming initiative in Tarago, New South Wales.
The project aims to increase carbon sequestration and support regenerative agriculture, aligning with national climate goals.
With the $2 billion milestone, NAB continues to play a pivotal role in financing Australia’s transition to a net-zero economy. The bank said it would keep expanding its sustainable finance products to meet rising demand across sectors.
“Our customers are not waiting for regulation—they’re acting now,” Morecroft said. “Green finance is no longer niche; it’s mainstream.”
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