Understanding green finance
What is green finance?
Green finance is an approach to funding that focuses on the environmental and social impact of the capital being loaned. It’s used to fund projects that reduce carbon emissions, improve general energy efficiency, and mitigate business activities that contribute to climate change.
Types of green finance
The most common type of green finance is a green loan . Green lending works just like a normal business loan, but it’s only granted as a facility for developing sustainable, green infrastructure.
Alongside loans, green mortgages are a common type of green finance. Green mortgages are solely for the purpose of building sustainable real estate, or renovating existing real estate to bring it up to modern energy efficiency standards.
What infrastructure can be funded using green finance?
Green infrastructure encompasses a wide range of assets and business sectors. The most commonly accepted ‘green’ types of infrastructure are:
- Renewable energy production and storage
- Energy usage and efficiency
- Low emission transport
- Water conservation
- Waste management
- Habitat protection and reforestation
Our lending options
If you’re planning to make changes to reduce your carbon impact, our business loans and finance options could help. From funding solar panels to electric vehicles and charging infrastructure, we’re here to help you achieve your climate goals.
*Security and / or Director’s guarantee may be required. Product fees may apply. To apply you must be a UK resident aged 18 or over.