Carbon Trust’s £40m Big Business Refit Is A Scrappage Scheme: Theo Paphitis

Posted on 09. Sep, 2009 by Ross in Heavy Industry, Manufacturing, Retail & Commercial, United Kingdom, Warehousing, Distribution & Logistics

Businesses around the country are laying off staff in order to save money through the recession, despite millions of pounds in interest-free loans being available from the Carbon Trust to reduce bottom line costs through energy efficiency.

Making do with old, inefficient equipment or replacing it when it finally breaks down is costing businesses £3.3bn every year in wasted energy, as revealed in a survey at the launch by Theo Paphitis of the Carbon Trust’s Big Business Refit campaign. The Dragon’s Den star said:

I’m not your normal green campaigner. First and foremost I’m a businessman… I’m for practical incentives that help businesses survive, though. And interest-free loans of between £3,000 and £400,000 to replace businesses’ old machines – it’s what I call a no-brainer – an open goal.

The Big Business Refit aims to help businesses to scrap their old power-guzzling equipment and replace it with new equipment that’s more efficient and cheaper to run. It provides expert guidance, plus financial support in the form of £100m in interest free funding, which can be paid back through the energy savings the new equipment delivers.

Seeing the Light

One business that has already saved by scrapping its old equipment is Yorkshire-based Flexible Packaging Printers, Roberts Mart & Co Ltd. As well as core equipment refits, the company also installed Somar Eluma efficient warehouse lighting, delivering substantial energy savings along with vastly improved light levels. Sales Director Ben Roberts said:

We’ve taken advantage of two Carbon Trust loans, totalling over £300,000, to replace printing press drying systems, a boiler and lighting. As a result, we’re saving around £130,000 a year on our energy bills, plus around 900 tonnes of CO2. The Carbon Trust loans scheme has been a simple and effective way for us to modernise our business, and reduce costs in the recession.

Supporting the Big Business Refit

The Federation of Small Businesses (FSB), the Institute of Directors (IoD), the British Chambers of Commerce (BCC), the Mayor of London, and the Department of Energy and Climate Change (DECC) have all pledged their support for the Carbon Trust’s Big Business Refit. David Caro, FSB Energy & Environment Chairman, said:

Due to their size, small businesses are in a unique position to adopt energy efficiency measures more easily and quickly than their larger counterparts. However, small business owners are often limited by time constraints and are not always aware of where and how to access advice on how to go green. The support of the Carbon Trust can help small businesses play their part in being energy efficient and cutting costs, saving money and boosting their own enterprise.

Miles Templeman, Director General, Institute of Directors, noted that the Carbon Trust’s loan scheme gives small businesses access to the capital they need to unlock their future growth potential, whilst
Gareth Elliott, Senior Environment Policy Adviser of the British Chambers of Commerce, said:

In the current downturn cash is king and the first place struggling businesses should look to redeem cash is in their business premises where it’s possible to eliminate energy wastage. The Carbon Trust loans scheme offers a practical solution for business survival through energy efficiency and we’d encourage businesses across the UK to take advantage of the funding available.

Mayor of London, Boris Johnson, said:

I want to give my backing to the Carbon Trust’s Big Business Refit. At a time of economic downturn it is a great way to help businesses install energy efficient equipment and save money on their energy bills. This is a fantastic scheme both for London’s businesses and the environment and we will be promoting it later this year through the London Development Agency’s business support services, such as Business Link.

Energy and Climate Change Minister David Kidney said:

We’re helping small businesses survive the recession by providing a practical solution to save a total of £40million from energy bills. Replacing old equipment with energy efficient versions will also reduce carbon emissions, combating global warming.

The Carbon Trust’s unsecured, interest-free loans can be used for equipment replacements costing between £3,000 and £400,000. The loans are designed to pay for themselves through direct energy savings, so that once the loan is repaid, savings go straight to bottom line. With a total of £100m in funding available, the Big Business Refit is expected to help up to 3,000 UK SMEs save a total of £40m from their annual energy costs.

Somar International Ltd is a UK company which specialises in energy-saving technologies, which are available for installation using the Carbon Trust’s interest-free loans. To find out if you can benefit from Somar’s energy-efficient technology, you should visit Somar.co.uk by clicking here.

Image by wsuph001 @ Flickr