Barclays has launched a discounted interest rate across a number of its green loans for business propositions in a bid to help make reducing emissions and boosting biodiversity less cost-prohibitive for the agriculture industry and other UK businesses. Barclays’ green loans for Business can help businesses fund the purchase or refinance of eligible green assets.

Barclays has supported the agricultural sector since 1744. It banks almost a quarter of agricultural businesses in the UK, lending £1 in every £4 to the sector. A survey of its arable customers has laid bare some of the climate-related challenges facing the industry, as well as what farmers are already doing to reduce emissions and promote biodiversity.

Nearly two thirds (65%) have witnessed the effects of climate change on their farms, with greater weather variability and increased rainfall identified as the most commonly felt effects. Almost half (45%) consider the need to reduce greenhouse gas emissions as important and some 28% have already measured their on-farm greenhouse gas emissions. A further 83% consider improving nature as important for the future of their farms.

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Yet just 34% of Barclays’ arable customers have a plan in place to become more sustainable and reach net zero. The cost of purchasing the necessary equipment or machinery was identified by 45% of respondents as among the biggest challenges faced in progressing towards, or achieving, net zero.

To support the UK’s farmers in their transition to net zero, Barclays Business Banking is enhancing its suite of green loans for business with a discounted interest rate. The Green Barclayloan for Business, Green Commercial Mortgage, SIPP (self-invested personal pensions) / SSAS (self-administered scheme), and Green Buy-to-Let Mortgage for Businesses are all eligible products.

Head of agriculture, Barclays Business Banking, Adam White, said: “The agriculture industry is uniquely exposed to the impacts of climate change. We know many farmers want to do more to reduce their emissions and promote their on-farm biodiversity, but costs remain a challenge. This is where we can help.

“Remaining profitable is the number one priority for our arable customers, and our goal in discounting the interest rates on these loans is to help reduce the costs tied to lowering on-farm emissions. This is all part of our commitment to provide our agriculture customers with the support they need to be financially and environmentally sustainable.”

For more information about Barclays’ Green Loans for Business, visit: https://www.barclays.co.uk/business-banking/borrow/green_loans_for_business/