Barclays discounts Green Loans For Businesses as part of longstanding commitment to finance UK agriculture

• Barclays has discounted the interest rate across four of its Green Loans for Business propositions
• The changes come as part of Barclays’ longstanding commitment to finance UK SMEs and agriculture, helping finance the transition for UK businesses and making reducing emissions and boosting biodiversity less cost-prohibitive for the agriculture industry
• The cost of required machinery or equipment was identified by 45% of Barclays’ arable agriculture customers as among the biggest challenges in progressing to net zero

Barclays has launched a discounted interest rate across a number of its Green Loans for Business propositions¹ 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 customers² 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.

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.

Adam White, Head of Agriculture, Barclays Business Banking 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/

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1.      About Barclays’ Green Loans for Business

Green Loans for Business can support businesses by offering:

• Discounted interest rates – businesses could get a loan to purchase or refinance eligible green assets at discounted interest rates
• A choice of green assets – there are over 65 eligible green assets for Green Loans for Business, listed in the Eligible Green Assets Guide

Depending on which asset is chosen, a loan could help support energy efficiency, reduce emissions, make cost savings or generate additional income

Subject to eligibility and all conditions of a standard loan, other product features apply as standard. Not available for all industries and subject to lending assessment, status and application. Terms & conditions apply. Find more information here

Barclays’ Green Loans for Business offer a secured funding solution with discounted interest rates when purchasing or refinancing one or more eligible green assets. These are assets that meet Barclays’ green eligibility criteria, as listed in the Eligible Green Assets Guide. The Eligible Green Assets Guide is informed by Barclays’ Sustainable Finance Framework, which explains the process for classifying financing as sustainable for the purpose of tracking and disclosing the Bank’s performance against its sustainable finance targets. Classifying the loan as a Green Loan for Business does not mean that the loan and/or its terms and conditions align with any external sustainability related framework, principles or guidance, including the LMA Green Loan Principles.

2.      About Barclays’ arable customer survey

Barclays surveyed 118 of its arable agriculture Business Banking customers in June 2024.