Climate Action

Lloyds Bank pumps £2bn into sustainable finance schemes

Lloyds Bank is making an extra £2 billion available to help UK businesses implement sustainability initiatives.

  • 14 May 2018
  • Adam Wentworth

Lloyds Bank is making an extra £2 billion available to help UK businesses implement sustainability initiatives.

The funding adds to the £1 billion it has already committed to improve energy efficiency in the commercial real estate sector, and is also aimed at boosting productivity.

The Clean Growth Finance scheme, launched by the bank today, is being offered to all commercial banking clients if spent on certain green projects. These include reducing the carbon emissions of businesses, investments in low-carbon transport, water efficiency, waste reduction, and energy efficiency.

David Oldfield, the bank’s group director for commercial banking, said: “Businesses will continue to be a source of innovation and seize the opportunities presented by the global low carbon economy. Our funding will support small improvements in production, heating, transport, or environmental impact, right through to large scale renewable energy infrastructure.”

He added that incentives will also be provided to attract more businesses to the scheme: “By building on our commitments to help clients with discounted finance for investments in sustainable business, we will in turn support the UK’s goals for clean growth.”

Lloyds is the latest UK bank to bolster its sustainable finance offering as the market continues to grow in prominence. The market for green bonds, for example, is expected to rise to $200 billion this year from $13 billion five years ago.

Earlier this month, Barclays added to its existing green portfolio by creating special trade loans for use on low-carbon and sustainable projects.  The bank said the loans would “add to our growing green corporate banking proposition and furthers our ambition to bring green finance into the mainstream for all our customers and clients.”

HSBC has also committed to investing $100 billion in supporting the low-carbon economy by 2025. The London-based bank has also pledged to stop funding new coal-fired power plants and tar sands.

 

Photo Credit: Money Bright