MI 2020 Solutions FINAL

SECTION 07
INNOVATIVE FINANCING
03
INNOVATIVE
PEER-TO-PEER
GREEN LENDING
PLATFORM
AUSTRALIA
CHALLENGE
Scaling-up investment in
renewable electricity is critical
for reducing greenhouse gas
emissions from the power
sector. Despite increasing
cost-competitiveness of the
technologies, policy and market
fragmentation is hampering the
financing of such projects.
INNOVATION
Australia’s first peer-to-peer green
lending platform, RateSetter’s
Green Loan marketplace, makes
it easier for investors, borrowers
and clean energy providers to do
business in the clean energy field
by reducing market fragmentation.
It is an online platform, which brings
together investors, borrowers and
clean energy product providers with
a shared interest in low emissions,
energy efficiency and renewable energy
projects, to conclude deals that benefit
both parties.
It allows investors to lend directly to
creditworthy borrowers looking to buy
or install an approved “green” product.
Investors can specify the amount they
wish to invest and the interest rate they
are prepared to accept. Their request
can then be matched to approved
borrowers who seek finance to invest
in eligible clean energy assets such
as solar panels and inverters for
rooftop installation or energy efficient
and low emission equipment such
as power factor correction, voltage
optimisation or LED lighting.
ACTION
20 million AUD funding has been
provided by the Australian Government,
through the Clean Energy Finance
Corporation to develop the platform. The
platform will increase the flow of finance
into the clean energy sector through
RateSetter’s retail lender base, which will
now have access to borrowers via the
peer-to-peer loan product.
POTENTIAL
The facility creates an opportunity for
retail investors to have access to a
regulated “green” loan product for the
first time in the Australian market and
may establish a precedent for the rollout
of similar investment platforms.
USEFUL LINKS:
cefc.com.au/media/files/cefc-commits-
20-million-to-australian-first-peer-topeer-green-lending-platform/
100
101