NAB's Port of Newcastle funding tied to green sustainability goals

National Australia Bank has agreed to help finance the world's largest coal export terminal and has linked loans to a new set of social and environmental goals.

Last year ANZ withdrew its funding for the Port of Newcastle under its emissions action plan and over fears that the port could become a financial liability as the world moves away from fossil fuels.

NAB has stepped in to pull together "sustainability linked" loans to the value of $565 million. 

The conditions require the port to reduce Scope 1 and 2 emissions, which are emissions from port operations and consumed electricity.

It will also be required to screen suppliers for instances of modern slavery and demonstrate engagement with operators where a medium or high risk is found.

Key Points:

  • Green groups say a new financing deal for the Port of Newcastle is a step in the right direction
  • $50m has been earmarked for port diversification amid the global shift away from coal
  • Screening for poor working conditions are also built into the agreement
A reclaimer places coal in stockpiles at a coal port.

 

NAB says there will be significant financial advantages on offer if its conditions are met.(Reuters: Daniel Munoz)

Read the full article published in ABC News 5th April 2021