The CEFC-NAB program is designed to help accelerate the switch to greener vehicles, facilitate upgrades to industrial and agricultural equipment and increase the uptake of solar.

NAB will provide SMEs discounted equipment finance for assets that cut energy use or generate renewable energy, including assets such as irrigation systems, micro-turbines, solar PV, processing line improvements, bio-digesters and refrigeration.

Under the agreement, NAB will be able to offer a rate of 70 basis points below its standard equipment finance rate.

"Cutting energy costs has never been more important for Australian businesses. Australia spends more than $120 billion a year on energy – that's a 67% increase over 10 years. With the right equipment, businesses can lower energy and operating costs, cut heating, cooling and lighting bills and even create energy from waste," CEFC CEO Oliver Yates said.

"This investment program is available to provide an incentive for businesses to act now, undertaking both small and large scale projects, up to $5 million. This has been designed so the benefits of the $120 million in new CEFC funding will flow through to the businesses [that] invest in high efficiency and clean energy equipment."

Recognising the increasing role of solar energy in cutting power bills, the new program is also supporting the installation of rooftop solar PV, solar thermal for hot water and heat pumps and solar PV to displace diesel generation.

“Businesses wanting to cut energy costs by switching to hybrid and electric vehicles can benefit from this finance, as can agribusinesses wanting to improve irrigation and other productive equipment,” Yates added.

NAB Business executive general manager Cindy Batchelor said the potential positive impact of the deal was significant, particularly as it is the first time it has been offered to SMEs in this way.

"This program is unique to NAB and a real point of difference," Batchelor said.

"With loans available for one car right through to business with an entire car fleet, we've got an opportunity to reach a large proportion of the business community and deliver significant environmental change."

NAB was one of two inaugural signatories to the National Capital Declaration, a global statement that recognises that natural capital poses potential risks and opportunities to the finance sector. It is the only Australian bank to sign the declaration.