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Data from National Australia Bank (NAB) has indicated a 32 per cent surge in demand for green equipment finance over the past six months.
This shift is also accelerating, with uptake in March 2026 more than double the same time last year.
NAB’s green finance program, which offers discounted lending for businesses, farmers, and individuals to invest in sustainability, emissions reduction, and energy-efficient equipment, has seen electric vehicles (EVs) surge in popularity.
EVs now make up half of all the assets financed in the program, a trend that NAB said has been driven by businesses looking to reduce their exposure to fuel price volatility.
Nearly 80 per cent of demand is concentrated in NSW, Victoria, and Queensland.
NAB also said similar efficiency‑driven investments were emerging across agribusiness, with farmers increasingly investing in precision spraying technology to reduce herbicide use.
Partnerships prevail
Much of NAB’s green lending activity is being delivered through programs established in partnership with the government-backed Clean Energy Finance Corporation (CEFC).
NAB and CEFC launched two discounted finance programs in March 2025, supported by $300 million in CEFC funding.
In the first year since launch, the NAB–CEFC partnership has provided more than $130 million in discounted finance to over 550 Australian businesses.
The funding has supported investment across sectors including manufacturing, transport, and agriculture, helping businesses finance batteries, renewable energy systems, electric equipment, and on-farm upgrades aimed at lowering fuel costs and reducing emissions.
A mixed picture on the ground
While NAB has recorded an uptick in EV financing, the picture among brokers is more checkered.
OurCar Finance Brokers’ Will Frazer said he had not seen a corresponding surge in actual demand on the ground.
“I’m not seeing a huge influx of EVs whatsoever,” Frazer said and noted that around 90 per cent of his client base is businesses.
“For a lot of businesses, they’re just not turning over or holding as much money. Credit profiles aren’t as strong and, for industries such as construction, overheads have really gone up.
“I think if people are not worried about the cost of petrol, they’re just not going to buy a car at all.”
Frazer said that current market conditions were also creating opportunities in the traditional vehicle market.
“It’s interesting what might happen this year, because as fuel gets more expensive, for the businesses that are profitable, it’s arguably a good time to buy,” Frazer said.
“Dealerships will probably take deals on cars right now. Say a $70,000 Hilux – you could probably get a few grand off right now because demand is low.”
[Related: How the family home is reshaping retirement finance]
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