Commonwealth Bank of Australia (CBA) is launching a range of new green asset finance solutions to support businesses investing in green vehicles, equipment and machinery and achieving their sustainability goals, while also lowering energy costs and boosting productivity.
CBA's new Green Vehicle and Equipment Finance offers discounts of up to 1 per cent off the standard rate for new and used electric or hydrogen powered cars, trucks, vans or buses valued up to $250,000, and discounts of up to 0.5 per cent on other qualifying assets including electric and hydrogen powered machinery, solar, wind and hydro-powered equipment and charging and storage equipment.
CBA General Manager Asset Finance, Chris Moldrich, said many businesses were expected to take advantage of the Commonwealth Government's Instant Asset Write-Off scheme before it expires on 30 June, to bring forward purchases of green vehicles and equipment.
"This new green asset finance offering is designed to assist companies in the manufacturing, logistics and construction sectors who are focused on lowering their running costs and energy wastage, while also reducing carbon emissions.
"These new offerings enable businesses to transition their fleets and equipment to the latest, best-in-class sustainability options such as electric vehicles and green equipment. Our financing solutions cover up to 100 per cent of the purchase price of these assets, as well as supporting infrastructure such as chargers and batteries.
"There is a range of terms to suit different cash flow needs and the ability to use the purchased equipment as security for the loan also enables businesses to free up their working capital for other purposes," Mr Moldrich said.
A recent report by East & Partners showed that environmental concerns, lower finance costs and higher cost of fuels as well as regulatory pressures and investor requirements are key drivers for business investment in sustainability. One in five companies plan to install green energy production facilities on site, while one in three are broadly considering solar, hydrogen, electric vehicle chargers, batteries or pumped hydro, the report found.
CBA Green Vehicle and Equipment Finance is available for assets including:
- Vehicles: Electric cars, trucks or buses
- Charging and storage: Electric vehicle and equipment charging and storage assets such as batteries
- Electric or hydrogen machinery and engines: Battery powered agri, and goods and earth moving equipment
- LED Lighting upgrade projects
- Renewable energy: Solar, wind and hydro powered equipment including panel installations
Green asset finance adds to CBA's existing sustainable finance offering including for the purchase or construction of low carbon commercial property, property upgrade loans to improve energy and water efficiency and green home loans.
