Energy-Saving News

Carbon Trust Farms Interest With Free Agricultural Loans For Energy Efficiency

Posted on 22. Dec, 2009 by Ross in Food Production, Government Policy, United Kingdom

Five months after the initial announcement by the government, the Carbon Trust is now officially extending its interest-free business loan scheme to UK farms in an effort to promote energy efficiency within the agricultural sector.

The move was initially part of the UK government’s Low Carbon Transition Plan back in July, which set for the first time a carbon reduction target for the country’s farms and agricultural businesses. The 6% cut for farming was one of the most important and fresh steps with the Low Carbon Transition Plan, but received little notice at the time due to greater media attention focused on feed-in tariffs for renewable energy and pay-as-you-save schemes for domestic insulation.

The 6% reduction in agricultural emissions by 2020 was to be achieved by promoting more wide-spread use of anaerobic digesters to generate energy from livestock waste, from better awareness of food supply chain carbon footprints and from the inclusion of farming into eligibility for the Carbon Trust’s Big Business Refit.

The Big Business Refit allows businesses to receive interest-free unsecured loans in order to pay for more energy-efficient equipment. For farms, suitable projects would include thermal screens for greenhouses, new milk cooling systems, crop store insulation, energy efficient lighting and heating systems and grain drying humidity controls.

Although the Carbon Trust’s Big Business Refit usually allows businesses to apply for loans up to £500,000, farms and agricultual businesses will only be able to apply for interest-free loans between £3,000-£20,000. The scheme is projected to save up to £4million per year and reduce emissions by 25,000 tCO2 annually.

All farms and agricultural businesses are eligible for the loans, provided that they have been trading for over a year and are not a part of the CRC Energy Efficiency Scheme. To find out more about your eligibility, check out Somar International’s Carbon Trust Factsheet (PDF).

Commenting on the announcement, Environment Secretary Hilary Benn said:

It makes sense for farmers to reduce the energy they use. It reduces the cost of producing food, and it cuts the environmental impact too - something more and more consumers are asking about.

The Carbon Trust claims that almost a third of the funding available to the Big Business Refit has been allocated, saving UK businesses £100million per year on their energy bills. Carbon Trust chief executive Tom Delay remarked:

Upgrading old equipment using [the Carbon Trust] loans scheme is an excellent way for farmers to be more competitive in difficult times, by cutting their costs and reducing carbon emissions. By reducing costs and associated carbon emissions in this way, goods will also be more appealing to the rising tide of carbon conscious shoppers.

Image of farm cows by Ross Tucknott

Related posts:

1. £51 Million in New UK Public Sector Energy Efficiency Loans Now Available From The Carbon Trust
2. British Business Ignorant Of Loans For Big Refit Projects: Carbon Trust Survey
3. Carbon Trust: Bigger Loans, More Businesses, Less Carbon
4. UK Energy Efficiency Home Loans Take A Lesson From The Carbon Trust
5. Blue Chip Hits The Jackpot With 500k Carbon Trust Loan For Energy Efficiency

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Tags: Carbon Trust, farming, funding