Research results released by the Energy Efficiency Financing Scheme on January 5 reveal that roughly 400,000 businesses—or 38 percent of employers— throughout England would have difficulty raising capital for energy efficient investments if they applied for conventional bank loans.
Through the Energy Efficiency Financing Scheme—launched in April 2011— Carbon Trust Implementation Services Ltd.and Siemens Financial Services UK Ltd. have partnered to provide businesses with a range of affordable and flexible energy efficiency financing options. Worth up to £550 million (US$854 million) over its first three years of operation, the dedicated green equipment financing program is the first of its kind— and will enable U.K. businesses to invest in cost-effective energy efficiency equipment and other low-carbon technologies, such as new efficient lighting and biomass heating.
Siemens (News 
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Carbon Trust (News - Alert) Implementation Services is a subsidiary of the London-based Carbon Trust, which receives core grant funding from the U.K. Department of Energy and Climate Change to help accelerate the country’s conversion to a low-carbon economy.
Specifically, the new research reveals the number of companies in each major town and city that are likely to face difficulties raising bank loans for green equipment investments, which can significantly reduce businesses’ energy costs and carbon emissions. Evidence from the Bank of England, the central bank of the United Kingdom, demonstrates that tight credit conditions, especially for smaller businesses, are likely to persist in 2012.
Myles McCarthy, managing director at Carbon Trust Implementation Services, commented, “Our analysis shows that there is a huge market potential for energy-efficient equipment investment over the next three years, amounting to almost £9 billion (US$14 billion) across the country—for example, £768 million (US$1.2 billion) in London, £798 million (US$1.2 billion) in North East, and £580 million(US$900 million) in South West. The large number of inquiries in the Energy Efficiency Financing Scheme in the first few months confirms the significant appetite from business for investment in this area.”
He notes that, “The new [program] matches monthly payments to real monthly energy cost savings, which means that, in many cases, firms are cash neutral or cash positive from day one. These investments allow organizations to gain access to new equipment that is more productive, reduces waste, and lowers energy costs.”
In line with the same goals, on December 5, the Carbon Trust also launched its latest tool, Empower, which the group estimates could help employees save their organizations up to £500 million (US$776 million) in energy costs. The online tool enables employees to take an animated tour of a typical workplace—offering tips for saving energy, such as turning off PCs when not in use, printing double-sided, and using teleconferences to reduce the need for travel.
Just turning off PCs and monitors every evening can save £39 (US$60) per employee per year, while turning off lights when there is enough daylight can save £10 (US$15) a year, and turning down the heating 1degree Celsius (1.8 degrees Fahrenheit) saves £4 (US$6). Reducing paper use and always printing double-sided can save around £20 (US$31) per person per year—but the biggest savings of all could come from reducing work travel, which could amount to £150 (US$232) a year by avoiding just four business trips.
Employees can make a commitment to undertake such energy-saving activities, which both they and their managers can track.
The Carbon Trust says that Empower could save a typical small business over 15 percent on its total energy bill annually—or around £6,000 (US$9,293)—while larger organizations could save up to £150,000 (US$232,320) and more than 500 tons of CO2.
“Companies often struggle to harness the huge energy savings that an effectively engaged workforce can help deliver,” says Richard Rugg, head of Carbon Trust Programmes. “By creating a virtual tour entirely from an employee’s viewpoint, every aspect of Empower has been designed with the end-user in mind.”
Hotel and restaurant chain Whitbread and Oxford City Council already have signed up to use the new online tool.
“Engaging and empowering employees is a critical way for us to make significant carbon and financial savings,” commented Paul Robinson of Oxford City Council. “The new Empower tool is great fun to use and we intend to roll this out to all our staff in the near future.”
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Cheryl Kaften is an accomplished communicator who has written for consumer and corporate audiences. She has worked extensively for MasterCard (News - Alert) Worldwide, Philip Morris USA (Altria), and KPMG, and has consulted for Estee Lauder and the Philadelphia Inquirer Newspapers. To read more of her articles, please visit her columnist page.Edited by
Rich Steeves
