Barclays unveils new ‘green trade loans’ for businesses
Barclays’ annual general meeting in London may have been disrupted by climate change protesters this week, but the bank has made steady progress on sustainability.
The banking giant still finances oil and gas pipelines, which is under “review”, but it increasingly supports the low-carbon economy.
Its latest move into sustainable finance comes with the launch of loans to help businesses when building out new projects, or providing new sustainable services.
To qualify for the new type of green trade loan businesses must be used for a certain type of activity, including energy efficiency, renewable energy, sustainable transport and waste management, among others. It is hoped that with easier access to this type of finance, more green projects can come forward.
The news is the latest in a string of announcements from the UK bank intended to grow green financing within its operations. Last year it was the first bank in the country to issue a UK green bond, along with developing a series of new green products to support businesses in the clean economy.
Baihas Baghdadi, Barclays’ Global Head of Trade and Working Capital said that despite their earlier moves into the growing sector, the bank “knew that developing a dedicated proposition to meet working capital needs and targeted at increasing sustainable trade was also required to support UK businesses’ aspirations.”
“We’re proud that the Barclays Green Trade Loan is now available to facilitate more green trade and hope that it will play a big part in building momentum in support of the transition to a low-carbon future,” he added.
Dr Rhian-Mari Thomas, Chair of the Barclays Green Banking Council, added: “The Barclays Green Trade Loan adds to our growing green corporate banking proposition and furthers our ambition to bring green finance into the mainstream for all our customers and clients.”
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