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NAB introduces green finance initiative for commercial real estate to boost climate resilience

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The National Australia Bank (NAB) has unveiled a new Green Finance initiative directed at the Commercial Real Estate (CRE) sector, aimed at bolstering investments in green projects. This move is designed to support the development or retrofitting of eligible commercial buildings, in an effort to mitigate greenhouse gas emissions and enhance climate resilience within the sector. Rowan Munchenberg, NAB Executive of Business Lending, emphasized the significance of this initiative as part of the bank’s broader commitment to assisting customers in their transition towards net-zero emissions. “NAB Green Finance for CRE was another practical example of NAB supporting its customers to decarbonise, adapt, and improve climate resilience,” Munchenberg remarked.

Highlighting Australia’s ongoing shift towards net zero, Munchenberg pointed out the critical role of the commercial property sector, which is responsible for about 10% of the country’s greenhouse gas emissions. He underscored the importance of addressing this issue, stating, “As Australia continues to transition toward net zero, we’re working alongside our customers as they respond to changing consumer demand and strive to decarbonise.” Munchenberg also highlighted the economic and environmental benefits of reducing emissions and stressed the necessity for commercial solutions to aid businesses in this endeavor.

In addition to the Green Finance for CRE, NAB has invested in a comprehensive climate training program in collaboration with Melbourne Business School. This program is designed to equip the bank’s staff with the necessary knowledge and skills to better assist customers with their climate transition strategies. Munchenberg further explained, “Our climate trained CRE bankers are working with eligible customers, offering insights and expertise to help advance the development of specific commercial real estate projects.”

The initiative draws attention to the increasing evidence suggesting that commercial buildings with superior environmental ratings tend to achieve more favorable economic outcomes. This trend is expected to bolster demand for energy-efficient and environmentally friendly commercial properties. The NAB Green Finance for CRE is a component of the wider NAB Green Business Lending Framework and employs independent NABERS and Green Star ratings to evaluate the environmental performance of buildings.

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