Development Bank of Wales and Welsh Government launch £10m Green Business Loan Scheme
The Welsh Government and the Development Bank of Wales have unveiled a £10m Green Business Loan Scheme to assist businesses in Wales to cut their energy costs and become more energy-efficient.
The loan scheme is intended to aid businesses in reducing their carbon footprint in support of Wales’ plan to achieve net-zero emissions by 2050.
Projects eligible for the scheme include investing in renewable energy technology, improving energy efficiency within buildings, upgrading systems to decrease energy usage, and water usage and waste reduction/improvement.
The loan scheme will offer discounted interest rates and flexible repayment dates to make it easier for businesses to make the up-front investment required to become environmentally sustainable.
The Welsh Government’s Business Wales service is also providing support and advice to help businesses reduce their carbon footprint.
Economy Minister Vaughan Gething emphasized the importance of the Green Business Loan Scheme in supporting businesses on their decarbonisation journey.
Gething stated, “The economy has suffered in recent months and many businesses won’t have the resources needed to decarbonise. This is especially concerning as energy bills have risen, which highlights just how important Wales’ journey towards becoming a net-zero nation is.”
Minister for Climate Change, Julie James, said, “Businesses can be at the heart of our transition to net-zero, and we know our business community is keen to take action. This scheme offers the capital funding which small and medium-sized businesses often need to make investment decisions.”
The Development Bank of Wales aims to test the market through this pilot, which will help inform the operation of larger funds operated by the bank. The Wales Flexible Investment Fund, for example, can provide finance at far greater scale.
Giles Thorley, the Chief Executive of the Development Bank of Wales, stated that the new Green Business Loan Scheme would aid businesses in enhancing energy efficiency and future-proofing themselves against increasing energy costs.
Thorley added that the scheme would be provided on a patient capital basis, with payment schedules linked to the payback of the improvements made.
The market for green loans is evolving and new, and this pilot program will serve as a test case for the bank.
The Green Business Loan Scheme is now available, and businesses interested in the initiative are urged to contact the Development Bank of Wales for further information.
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