CEFC has entered a new partnership to offer discounted green loans to SMEs. 

The Clean Energy Finance Corporation (CEFC) has partnered with Australian auto finance lender Metro to provide discounted loans for small-to-medium sized enterprises (SMEs) aimed at enhancing energy efficiency and reducing emissions. 

This initiative will see a $50 million CEFC commitment to Metro’s $250 million MetroEco green securitisation warehouse, facilitating cheaper financing for a variety of clean energy technologies including electric vehicles (EVs), solar PV systems, batteries, and energy-efficient farming and construction machinery.

The MetroEco program offers a one per cent discount on loans for eligible customers, with the CEFC backing a 0.5 per cent discount that is matched by Metro Finance. 

For instance, a $60,000 loan for an EV could save an eligible customer approximately $1,700 in interest expenses over a five-year period.

“Australia’s estimated 2.4 million SMEs account for up to 98 per cent of Australian businesses, and are in many ways the backbone of our economy,” says CEFC CEO Ian Learmonth.

“This investment is about ensuring this dynamic and vital part of our economy can benefit from the clean energy transition, with lower energy use, lower energy costs and a smaller carbon footprint.”

Metro, established in 2011, is an independent Australian non-bank lender that specialises in auto and equipment finance for businesses and car finance for consumers. 

In 2018, the CEFC invested $50 million in Metro’s Green initiative, which aimed to finance an additional 1,000 low-emission vehicles on Australian roads.