New $1M Trust Horizon fund provides sustainability-linked loans to help local organisations transition to low-carbon future
A new fund established by Trust Horizon providing lower-interest finance will help organisations in the Eastern Bay sustainably transition from high-carbon energy sources to renewables – lowering the barriers to transitioning to a low-carbon economy.
“While sustainability and resilience are key priorities for the region, transitioning can come with high upfront investment from businesses. The Sustainable Energy Transition (SET) Fund will help local organisations meet these costs, with loans starting from $100,000,” says Trust Chief Executive Derek Caudwell.
The funding will be open to all Eastern Bay businesses and non-profit organisations who demonstrate a clear commitment to a carbon reduction pathway and have an energy-transition project requiring funding. Non-profits can apply for a lower-interest loan up to 100% of the project cost for a maximum term of 10 years, while businesses can apply for a loan of up to 75% of the project cost for a 5-year maximum term.
Loan funding is provided in partnership with Community Finance, who serve as a bridge between the Trust’s funding and genuine, positive, social and environmental change. Community Finance is Aotearoa’s largest impact investment platform, with nearly $100m in impact finance already advanced. James Palmer, Chief Executive of Community Finance, applauds the leadership of Trust Horizon in this space, stating, “Community Finance is proud to be partnering with Trust Horizon to support organisations in the Eastern Bay.”
The introduction of more sustainable technologies and initiatives is also expected to create new local employment opportunities. This aligns with one of Trust Horizon’s key priorities of contributing to job creation throughout the Eastern Bay.
“Projects that are good for the environment and business profitability – such as switching to solar energy, converting to electric vehicles, and eliminating waste streams – can all require large upfront investment,” says Trust Horizon Deputy Chairman, David Bulley. “The Trust is pleased to be able to support like-minded local organisations to transition so that our region can help lead the way to a more sustainable and resilient future.”
Trust Horizon provides community funding for a range of energy-related projects. Find out more here.