Cheap loans for green cars

Under the new government scheme, low-interest loans will be available for the purchase of low-emission vehicles.

Consumers buying energy-efficient cars will have access to discounted credit under a new taxpayer-backed scheme.

Lender Firstmac and Clean Energy Finance Corporation have agreed a $50 million "financial partnership" to provide cheaper loans for emissions reduction initiatives.

Firstmac managing director Kim Cannon said about $25 million would be spent on cheaper loans for green cars.

“We expect the agreement to provide loans for several thousand low-emission vehicles, as well as financing for the installation of solar energy and energy-efficient business equipment,” he said.

Passenger vehicles that emit 141 grams or less of carbon dioxide per kilometer are eligible.

Low-emission car loans will be available at a rate of just under 6 percent, he said.

Passenger vehicles emitting 141 grams or less of carbon dioxide per kilometer are eligible, as well as cars and vans emitting no more than 188 grams.

The environmental group the Climate Council welcomed the announcement.