Cut rates for green projects, banks told

A CABINET minister has urged banks to introduce reduced-rate interest on loans for people buying electric vehicles and investing in green energy home improvements.

Communications Minister Denis Naughten also told the lenders they should consider cheaper loan repayments for business owners seeking funding for environmentally friendly projects.

In his letter, seen by the Sunday Independent, the minister noted he is writing to the banks on the “eve of the anniversary of the bailout of the Irish banking sector by the people of Ireland”.

He said: “This has caused and continues to cause financial hardship for many.

“I would like to reiterate the need for all financial institutions to be conscious of this in their dealings with families and businesses throughout Ireland.

“While the banking collapse has been the major threat to the current generation, climate change is one of the greatest threats to future generations.

“I am therefore taking this opportunity to strongly urge your bank to offer a financial incentive to both individuals and business customers that wish to go green,” he added.

Mr Naughten said bank customers who are seeking loans to buy electric or hybrid vehicles should be given cheap loans to incentivise environmentally friendly driving.

The minister said businesses and homeowners using government grants through verified Sustainable Energy Authority of Ireland (SEAI) programmes should be given cut-price loans to reduce the country’s carbon footprint.

“This could also apply to loans associated with Government-funded business grants through SEAI, and accelerated capital allowances for energy-efficiency measures,” he added.

“I know from recent discussions with the European Investment Bank that it would be willing to engage with the Irish banking sector to put in place a product that would allow business and homeowners to carry out energy-efficiency upgrades and pay for these through the savings generated.

“I would ask you to engage with the EIB in this regard.”

He continued: “As the impact of climate becomes a stark reality in communities and across businesses throughout Ireland, we need to encourage the public to invest in the future to protect our planet for the sake of our environment.

“I believe this is an opportune time to give something back and start to green your loan book,” he added.