Barclays Cuts Interest Rates on Green Loans to Help UK Farmers Transition to Net Zero

Barclays Cuts Interest Rates on Green Loans to Help UK Farmers Transition to Net Zero

(IN BRIEF) Barclays has reduced interest rates on four of its Green Loans for Business to support UK agriculture and SMEs in their efforts to reduce emissions and enhance biodiversity. This move is part of Barclays’ commitment to financing the transition to net zero for businesses, especially in the agricultural sector, which faces financial hurdles in adopting green technologies. A survey of Barclays’ arable customers revealed that many farmers view the cost of equipment as a major barrier to sustainability. Barclays’ discounted loans aim to make these investments more affordable, helping farmers reduce emissions while maintaining profitability.

(PRESS RELEASE) LONDON, 19-Sep-2024 — /EuropaWire/ — Barclays has introduced reduced interest rates across four of its Green Loans for Business, continuing its long-term dedication to financing UK agriculture and small to medium-sized enterprises (SMEs). This initiative is designed to ease the financial burden on the agricultural sector, helping businesses transition to lower emissions and enhanced biodiversity.

A survey of Barclays’ arable agriculture customers revealed that 45% see the cost of essential equipment and machinery as a key obstacle in moving toward net zero. To address this, the bank has adjusted interest rates across a range of its Green Loans for Business products, aiming to make environmental upgrades more affordable. Barclays’ Green Loans for Business are tailored to help companies finance or refinance eligible green assets, facilitating the purchase of equipment that reduces emissions or improves energy efficiency.

Barclays’ connection to UK farming dates back to 1744, and today it provides financial services to nearly one in four agricultural businesses in the country. The recent survey sheds light on the climate challenges farmers face, with 65% of respondents reporting that climate change has already impacted their farms—particularly through unpredictable weather patterns and increased rainfall.

Despite this, only 34% of Barclays’ arable customers have a concrete plan for becoming more sustainable and reaching net zero. While nearly half (45%) recognize the importance of cutting greenhouse gas emissions, and 28% have already measured their farm’s emissions, financial constraints remain a hurdle for many. Additionally, 83% consider promoting biodiversity essential to the future success of their farms.

In response to these challenges, Barclays Business Banking is now offering reduced interest rates on several products, including the Green Barclayloan for Business, Green Commercial Mortgage, and Green Buy-to-Let Mortgage for Businesses. These discounted loans are part of the bank’s wider strategy to support farmers as they navigate both financial and environmental sustainability.

Adam White, Head of Agriculture at Barclays Business Banking, emphasized the critical role farmers play in addressing climate change. “Agriculture is particularly vulnerable to the effects of climate change, and we understand the financial barriers farmers face when trying to reduce emissions and enhance biodiversity. Our goal with these discounted loans is to make it more affordable for farmers to invest in the necessary equipment and resources to lower their emissions while maintaining profitability.”

For more information on Barclays’ Green Loans for Business, visit: Barclays Green Loans for Business.

About Barclays’ Green Loans for Business

Barclays’ Green Loans for Business provide businesses with a secured funding solution at discounted interest rates to finance or refinance the purchase of one or more eligible green assets. These assets must meet Barclays’ criteria as outlined in its Eligible Green Assets Guide, which aligns with its Sustainable Finance Framework. Businesses can choose from over 65 green assets, including options to enhance energy efficiency, reduce emissions, save on operational costs, or generate new income streams.

About Barclays’ Arable Customer Survey

In June 2024, Barclays surveyed 118 of its arable agriculture Business Banking customers to assess the sector’s climate-related challenges and efforts toward sustainability.

Media Contact:

Tel: 0345 7345345
Email: ukpressoffice@barclays.com

SOURCE: Barclays