Small and medium-sized businesses are aggressively pursuing investments in energy-efficient equipment, according to new data from NAB, Australia’s largest business bank.
NAB’s green finance for vehicles and equipment loan book has seen an 80% growth over the past year, indicating a strong trend towards sustainable business practices.
The data revealed a 51% increase in finance for electric vehicles and a 33% rise in investments in solar panels. Electric buses, though starting from a smaller base, have experienced a significant 168% growth.
Businesses in West Australia lead the growth in green finance with a remarkable 305% increase, followed by New South Wales at 82%, and Tasmania at 78%.
“With higher interest rates and stubborn inflation, many businesses are continuing to operate in a higher cost environment and are searching for cost savings,” said Brett Moore (pictured above), NAB business banking executive.
“What we’re continuing to see is business owners making considered investments in energy efficient equipment that can help reduce operating costs – such as energy – as well as their carbon footprint.”
Daniel Zanon, owner of VTH Supply Chain Solutions, is an example of a business leader making significant strides in green investment. Zanon is expanding his fleet of electric trucks for “'last mile” parcel delivery, aiming to add 35 more electric trucks to his existing fleet of 140 petrol vehicles by next year.
“My electric trucks can get their deliveries done with no vehicle emissions while also bringing costs down in the long run – such as gas expenses and fuel levies,” he said.
NAB’s continued support for green business investments is bolstered by governmental policies such as the extension of the $20,000 instant asset write-off, encouraging more businesses to invest in sustainable solutions. This initiative is expected to drive further investment in green equipment.
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