“Westpac recognises that climate change is one of the most significant issues that will impact the long-term prosperity of the global economy and our way of life,” says the bank’s 2020 Sustainability Performance Report. “As a financial institution, we believe the most constructive role we can play is to work with customers and communities to respond to the challenge of climate change.”

Five core principles guide and inform Westpac’s approach to climate change: the need to transition to a net-zero-emissions economy by 2050, the complementary nature of economic growth and emissions reduction, that addressing climate change creates opportunities, that climate-change risk is a financial risk, and the need for collective action, transparency and disclosure.

The bank has so far lent A$10.1 billion (US$7.8 billion) to climate-change solutions and has committed to providing a further A$3.5 billion of such lending by 2023 and A$15 billion more by 2030. The pipeline of projects funded and to fund in the near future suggests meeting these targets may not be a major challenge.

On 11 February, UPC\AC Renewables Australia announced that it had closed financing of the first, 400MW, stage of its New England Solar Farm in Uralla, New South Wales (NSW) – part of what is intended eventually to become a 720MW solar generator and 400MW battery project. Westpac was a main lender in this project.

The developer expects energy generation and grid connection to commence by July 2022 and, when complete, to deliver enough power to supply approximately 250,000 households. This will mean renewable energy being used to “help fill the gap left by the expected closure of the [coal-fired] Liddell power station”.

Anton Rohner, chief executive at UPC\AC Renewables Australia in Hobart, said: “It’s exciting to achieve financial close on a merchant basis for such a large project, which is the first of many such projects we have in Australia. UPC\AC Renewables Australia views this project fitting into the NSW government roadmap and looks forward to being engaged in this process to help lower electricity prices in NSW.”

Less than two months earlier, Fotowatio Renewable Ventures announced that it had closed the financing agreement for its 115MW Metz Solar Farm near Armidale, NSW – again with Westpac as a main lender. In this case, the funding is being provided via a green loan that is compliant with Loan Market Association green-loan principles and green-projects requirements.

The Metz Solar Farm has secured approval for its grid connection from the Australian Energy Market Operator and a substation has been completed by Transgrid. The project also has a power-purchase agreement with Snowy Hydro.