UK bank launches £100m Green Tariff Lending to fund energy-efficient buildings
A UK bank has launched a new green tariff for loans supporting organisations taking actions to improve energy efficiency and pursue a low carbon future.
Unity Trust Bank’s new tariff is available to new and existing customers and will provide beneficial lending terms to those looking to reduce the environmental footprint of their buildings. It is also suitable for organisations that have already achieved high levels of energy efficiency.
The £100m ringfenced finance is for eligible energy savings and carbon reduction projects such as low carbon heating, improved insulation, small scale renewable energy and climate resilience measures.
Matt Conroy, head of impact propositions at Unity Trust Bank, said: “With a government target for the UK to reach net zero by 2050 and the increased costs of energy, it’s important to find solutions to support our customers to move to a low carbon economy.
“As a social impact bank, we believe that finance has an important role to play in achieving a greener future.
“This new tariff is aimed at helping customers to significantly reduce their carbon footprint, adopt more sustainable practices and protect the environment.
“The terms are designed to be clear, easily understood and to provide fair value to customers through transparent pricing and tangible cost benefits.”
The green tariff replaces Unity’s retrofit transition initiative (RTI), which launched in 2023 and won Funding Team of the Year at the Unlock Net Zero Awards 2025. To date, over 1,770 affordable homes have benefited from RTI funding.
With residential and commercial buildings combined accounting for 20-21% of carbon emissions, according to 2023 figures, the new green tariff lending will further contribute to the UK’s transition to net zero.
Mr Conroy added: “Through Unity’s RTI we were able to support the delivery of energy efficiency measures within the UK’s social housing stock.
“We will now be able to do this for all our customers through retrofit and decarbonisation improvements, energy efficiencies and clean energy technology.
“We also want to support organisations that have already improved the energy performance of their buildings, and contributing to a low carbon economy.”
Unity has set a net zero target by 2045 and is a signatory of the Fossil Fuel Non-Proliferation Treaty. Unity excludes funding for high-carbon or high-polluting industries and assesses all lending to deliver quantifiable impact. Every loan proposal is aligned to one or more of the United Nations’ sustainable development goals and assessed for the positive social, economic or environmental impact on UK communities.
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