UK Government On Energy Efficiency Defensive

Posted on 01. May, 2009 by Ross in Government Policy, United Kingdom

The UK Government has sprung into action today to counter growing disillusionment with their plans to counter climate change as laid out in last week’s first Carbon Budget, as highlighted by npower’s latest survey of business opinions on energy efficiency. More criticism surfaced today from charity Business in the Community, whose latest survey revealed that two-thirds of businesses are unaware that the new Carbon Reduction Commitment will compel them to start cutting their carbon emissions, adding weight to the contention that the Government is failing to communicate its policies and legislation effectively.

The Government’s energy and climate change secretary Ed Miliband has called on UK business leaders to take advantage of the additional £100m in green interest-free loans announced in last week’s Budget. The funding will be made available over the next two years through the Carbon Trust’s existing energy-efficient loans.

Small and medium businesses still unsure of how the green measures in the latest Budget effect them can check out Energy-Saving News’s Guide to the 2009 Carbon Budget for Small and Medium Businesses.

Miliband urged businesses to find out if they are eligible by contacting the Carbon Trust immediately.

“Interest-free loans totalling £100m over the next two years were announced in the Budget. This real help, delivered by the Carbon Trust in England, means that businesses in every corner of Britain can now improve their energy efficiency and make real savings on their energy bills at a time when every penny counts.”

Despite the Government’s attempts to encourage businesses to become more energy-efficient in oredr to cut costs and reduce emissions, it is failing to make sufficient progress within the public sector. It is commited to reducing emissions in the public sector by 12.5% by 2012 from 2000 levels, but has so far only managed a 6.3% cut. To compound the embarrassment, a report from the Sustainable Development Commission also highlights the fact that the public sector’s use of renewable energy has actually reduced, along with the amount of waste recycling. The Budget added a further £65 million in funds for public sector energy efficiency projects, also available through the Carbon Trust.

The Carbon Trust loan scheme allows small and medium-sized businesses investing in energy-efficient technologies - e.g. Somar International’s energy-efficient Eluma lighting which is supported by the Carbon Trust - to receive unsecured loans to cover the project’s costs, with an interest free pay back period of up to four years. Businesses with fewer than 250 employees or an annual turnover of less than £40m are eligible for the scheme, and certain projects like Eluma can result in energy savings of around 80% with Return On Investment periods of little over a year.