Environmental finance solutions

Global concern about carbon emissions has created a new challenge for business - decoupling economic growth from growth in emissions. As Governments, Investors, Consumers, Employees and wider stakeholders press for change, the management of carbon fundamentals – supply, demand and risk management - is becoming a key driver for business. Environment Finance Solutions assists National Australia Bank’s clients with financial products targeted at these key areas.

Supply

For businesses with regulated carbon emissions, securing supply of emission rights is business critical. Companies that have made voluntary offsetting commitments (such as operating carbon neutral) face similar challenges. Environment Finance Solutions works with clients to assess the available options and offer tailored solutions, and a route to market, for the supply and delivery of both compliance permits (AEUs & EUAs), Kyoto units (CERs, ERUs & RMUs), and voluntary offsets.

Demand

Regardless of whether your businesses’ emissions are regulated or not, the pressure to drive down carbon usage will only increase. Environment Finance Solutions can work with you to develop strategies that will lower your emissions intensity (and cost) while enhancing value. We have expertise in a wide range of methods to assist in emission reduction. This can either occur through debt financing energy efficiency retrofits of commercial buildings, or the asset financing of energy efficient and/or renewable fixed and mobile infrastructure.

Risk Management

Carbon is an asset class like any other and comes with risks than will require management. NAB brings its depth of expertise from interest rate, currency and commodity markets to carbon risk management. A number of risk management tools are under construction and will be rolled out in line with market liquidity and depth. Currently we offer:

• Forward and spot trades.

• Long term, fixed price supply arrangements through investment in project activities.