National Australia Bank (NAB) on Thursday pledged to make A$18 billion ($12.8 billion) of funding available for low-carbon investments over the next seven years as part of an announcement that saw 12 Australian banks and utilities promise action to reduce greenhouse gas emissions.

The companies signed up for several commitments under the We Mean Business initiative, which has drawn similar pledges from 250 companies worldwide.

“Finance will be provided to our customers to undertake climate change mitigation such as renewable energy and energy efficiency including low carbon property, low emission transport, and climate change adaptation activities,” NAB said in a statement.

The funds will include new lending, debt market activity, provision of risk management products, development of financing solutions and advisory activities, the bank said.

Some of the pledges announced Thursday were new, while others have been made before, such as AGL’s, which were released in April.

Six of the companies – Bank Australia, NAB and Westpac as well as utilities AGL, Infigen and Origin – have committed to implement an internal carbon price to guide investment decisions.

“These climate commitments represent a significant shift in the policies and approaches of many of Australia’s leading companies on climate change. It is clear that the transition to a low carbon economy is underway, and that Australian business is beginning to seize the growth and employment opportunities that this transformation offers,” James Day, CDP director for Australia and New Zealand said in a statement.

By Stian Reklev – stian@carbon-pulse.com

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