NAB backs coal port
NAB is helping to finance the world's largest coal export terminal, but with a number of green conditions.
NAB has announced it will provide “sustainability linked” loans to the value of $565 million for the Port of Newcastle, imposing conditions that require the port to reduce emissions from port operations and consumed electricity.
The port must also engage only with operators whose risk of using modern slavery is low.
Other conditions include a requirement to set up an Indigenous internship program, boost mental health support and achieve certification from the NSW government's Sustainability Advantage Scheme.
The port will be offered a lower margin on debt if set targets are met.
The deal comes after ANZ withdrew funding for the Port of Newcastle, labelling it a potential financial liability as the world moves away from fossil fuels.
While some green groups have welcomed what they see as a step in the right direction, others have criticised the deal for not fundamentally addressing coal exports.
“NAB is effectively telling Newcastle ‘go ahead and continue to be the world's biggest coal port, just make sure you use some low energy light bulbs as you do it’,” environmental economics firm Market Forces said in a statement.
But the port is receiving around $50 million in new “green lending” to fund green building projects and move the port’s revenue base away from coal.