Isra-Mart srl:Lloyds vows to step up loans to help green small businesses

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The UK's largest banking group has announced it is keen to work with small and medium-sized enterprises (SME) that want to take out loans to invest in the UK's emerging low-carbon economy.

Lloyds Banking Group today urged SMEs to immediately start developing green products and services, ahead of a CBI climate change summit on Wednesday, which it is sponsoring.

Diana Brightmore-Armour, chief executive of Lloyds corporate banking, said it was ready to take a leading role in the fight against climate change, recognising that the global market for greener goods and services is expected to be worth around £4 trillion by 2015.

"We want our clients to succeed in the low-carbon economy," she said. "So, helping them to understand the opportunities and challenges posed by the sustainability agenda is another way in which we can support them in the coming years."

The move will offer a dual riposte to critics of the banking sector, who have been arguing that banks are not doing enough to provide loans to both small businesses and low-carbon projects.

CBI director for business environment Neil Bentley said that small firms will have a crucial role to play in driving the development of the low-carbon economy, despite the fact that they are currently less closely associated with green initiatives when compared with blue chip firms.

"SMEs will be the engine of the UK's economic recovery and the low-carbon sector presents many exciting new opportunities for growth," he said.

Secretary for energy and climate change Chris Huhne will address delegates at this week's CBI summit, and the day will also feature a high-profile debate between Lord Lawson, chairman of the Global Warming Policy Foundation and prominent climate sceptic, and Sir David King, director of the Smith School of Enterprise and the Environment, and former chief scientific adviser to the government.

The government has already set out plans to support green SMEs, with targeted funding for those working in high growth potential sectors, such as energy and sustainability.

Earlier this month it also pledged to roll out a package of support measures, including improved access to finance, support for new businesses and the opening up of government procurement processes to smaller firms.