Westpac has reached a significant lending milestone as it supports its electricity generation customers to transition to renewable sources, with 80% of all lending to this sector in Australia now being to renewable projects such as wind and solar farms and hydropower generation.
The milestone was reached with the financing of three solar farms in regional New South Wales (Corowa, Junee, and Wagga) that will produce 220 GWh annually, reducing 180,000 tons of carbon dioxide equivalent emissions per year. The majority of the power from the three projects will be sold under a 10 year “Green” Power Purchase Agreement (PPA) with Coles.
Anthony Miller, Chief Executive, Westpac Institutional Bank, said: “Westpac first funded a wind farm in 2002, and since then has provided extensive support for the electricity sector as it makes great strides in transitioning to renewables. This includes providing financing to support $8bn of total new renewable energy capital investment over the last five years.”
Westpac has been tracking the composition of its electricity generation portfolio since 2013 and in that year lending to renewables was 48%.
“Westpac’s strategy is two-fold – we are focussed on growing our renewable energy portfolio, but equally important, we will work closely with customers in higher emissions sectors with transition, helping them to find a sustainable pathway to net zero by 2050,” Mr Miller said.
“For business and banks, there is a huge opportunity to partner together and use finance to help drive better sustainability outcomes. It won’t always be an easy path, but we are committed to helping companies who can and want to transition,” he said.
