Recycling businesses need loans but many banks will not lend to them in the current economic climate. But ethical bank Triodos Bank has increased its lending and support to the environmental sector to tackle climate change.
Triodos Bank will increase the amount it lends to the environmental sector during this year. It currently lends more than £56 million in loans to businesses in the sector including recycling, food waste collection, recycled product manufacturer and composting businesses.
Head of business banking Dr Bevis Watts told MRW: 2009 will be a busy year for Triodos. We hope to invest in recycling and waste businesses, especially when it comes to anaerobic digestion (AD). We will continue to break new ground within that area. Where some banks are not lending we will continue to break new ground. AD brings benefits because it is a technology that can deal with waste problems and generate energy.
Watts added that the domestic market for recyclables has grown massively over the past 10 years and not all recyclables have been going to China, as some media reports claim.
One recycling business Triodos has funded is Trojan Services. The firm manufactures civil engineering products for the rail industry.
Trojan Services managing director Stewart Wellens said: It is vital that banks keep lending to environmental businesses like us. The money we have borrowed has been used to fund the start of the commercial stage of the business development of Trotrof railway products. We would have been unable to fulfill our growth potential without this funding.
Watts said: Triodos is concerned about the potential impact on the environmental agenda if mainstream banks do not support the environmental industries. Triodos invests in the future of the sustainable sectors as we see great potential from an environmental and an investment point of view. The environmental industries and innovation are crucial in fighting climate change and must be supported during this economic downturn.