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Lloyds and Barclays join green lending drive

Lloyds Bank and Barclays are the latest major lenders to launch green business loan initiatives targeted at investments in low carbon tech and efficiency.

Lloyds Bank and Barclays are the latest major lenders to launch green business loan initiatives targeted at investments in low carbon technologies and efficiency.

Lloyds Banking Group has announced a £2 billion ‘Clean Growth Finance’ package of discounted lending for businesses wanting to reduce their environmental impact and boost productivity.

David Oldfield, group director of commercial banking at Lloyds, said the funding will support “small improvements in production, heating, transport or environmental impact, right through to large-scale renewable energy infrastructure”.

The bank has also partnered with the University of Cambridge to provide specialist sustainability training for 300 of its relationship managers. 

Meanwhile, Barclays has launched a similar ‘Green Trade Loans’ product to provide capital funding for projects covering renewable energy, energy efficiency, green transport, sustainable waste management, sustainable water and sustainable food. 

The initiative compliments other recently launched services, such as its ‘Green Home Mortgage’ which offers preferential mortgage rates for energy efficient properties.

Green finance boom

The two announcements reflect a growing focus on specialist finance for sustainability projects.

Last year, tech giant Philips secured a unique finance package that links interest payments to the company’s sustainability performance, a deal described as a “mind-shift in corporate financing”.