The Clean Energy Finance Corporation has partnered with specialist medical non-bank lender Credabl to create $20 million in green loans for medical practitioners.
The loans will be available to doctors, dentists, specialists, and veterinarians.
The discounted finance will be available for a range of activities, including energy-efficiency upgrades for premises, procuring energy-efficient premises, installation of solar PV, EV charging infrastructure and the purchase of EVs for professional use. Costs associated with retrofitting a surgery or practice to take out gas and install electric replacements for heating, hot water or other uses would also be eligible.
An interest rate discount of up to 0.65 per cent will be applied to the loans.
The initiative aligns with a broader government agenda to decarbonise the healthcare sector.
In 2024, it signed a joint international statement led by the UK government and the previous US government on the decarbonisation of healthcare supply chains, including both goods procured for healthcare and actual service provision.
As a whole, it is estimated the healthcare sector accounts for up to 7 per cent of national carbon emissions, and organisations including the Climate and Health Alliance (CAHA) and Doctors for the Environment Australia have been advocating strongly for action to reduce this impact.
“Healthcare facilities are energy intensive because of the unique services they provide and the complex technologies they use to keep us well. This is the case for large hospital as well as smaller healthcare practices,” CEFC executive director Richard Lovell said.
“At the same time, healthcare practitioners recognise that reducing carbon emissions and managing resources more efficiently can bring benefits for human health while improving the sustainability of their operations without compromising the quality of care for patients.”
Lovell told The Fifth Estate that applicants for the loans will need to meet a burden of proof that the funds are being used for appropriate purposes.
“Assuming the customer meets the (general Credabl) eligibility criteria, they will need to provide evidence to demonstrate that eligible technologies are to be installed, depending on the type of technology,” he said.
For example, an EV could be checked through VIN numbers, or invoices from accredited installers or vendors can be used for evidence of installation of energy efficient appliances or solar PV.
Most medical businesses are also small to medium enterprises, and Lovell noted that SMEs have an important role to play in the national energy transition. Another benefit he expects to see is reduced costs associated with energy use.
“Green loan products encourage the early adoption of clean energy technologies to improve business sustainability and reduce emissions,” he said.
“The industry specific expertise Credabl brings as a specialised healthcare finance lender aligns with increased advocacy from the healthcare sector for more sustainable action and provides a practical way to transition to renewable energy sources and reducing emissions.”
The loans will be available both to the lender’s existing customers and to new customers. Eligible businesses in the medical field will include clinics, surgeries and practices, and small private hospitals if they have a practitioner-led ownership structure. Facilities with a corporate ownership structure will not be eligible.
Credabl CEO Stafford Hamilton said offering the discounted green loans aligns the “pursuit of medical excellence with the urgent need for environmental responsibility.”
“This initiative not only reinforces our position as innovators in medical finance but also empowers those who dedicate their lives to healing others to contribute to Australia’s journey toward net zero.”